Trader forecasts Ethereum price movement

A practicing trader and founder of the project Crypto Shaman Vadim Shovkun explains the current market situation.

Bitcoin shows minimal volatility in the market; the latest overview remains relevant. Accordingly, we examine the situation for the second-largest cryptocurrency by market capitalization.

First, what to look at is the strength index correlated with Bitcoin. Ethereum looks slightly stronger; the latest wave of growth has not been engulfed, the overall HL\\HH structure remains intact. At the moment, ETH is about 17% above its low from the last wave (Bitcoin is only 7%).

ETH is currently trading within the primary horizontal value area of the previous up move (HVN). If Bitcoin fails to hold, the coin would move to the next horizontal-volume resistance, about -34% (versus -23% for BTC). In a rebound on momentum, upside is presently forecast at +22%.

ETH is currently trading within the primary horizontal value area of the previous up move (HVN). If Bitcoin fails to hold, the coin would move to the next horizontal-volume resistance, about -34% (versus -23% for BTC). In a rebound on momentum, upside is presently forecast at +22%.

Based on this, interesting zones for locating long positions can be identified. The area $3085-$3140 is a small support zone, with a stronger zone in the range of $2850-$2950.

If it moves into the second zone, a bullish divergence on the RSI and a W-shaped formation are likely, which would also be bullish signals.

If it falls below the $2850-$2950 zone and stays there, Ethereum would face serious problems — the downside room is substantial. But such a scenario would be possible only if Bitcoin remains below $40,000, which would signal a break in the mid-term trend and the onset of a crypto winter.

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