The markets are currently consolidating within a very narrow range, but are displaying chances of a notable upswing in the next 24 to 48 hours. While Bitcoin price is heading towards $17000, the second largest crypto Ethereum, which closely follows the star crypto is also believed to leap long very soon. The current trade set-up indicates that the ETH price is all set to explode beyond $1300 after sustaining firmly above $1240 support for a long time.
After breaching these levels, the ETH price may aim higher and reach levels close to $1500. However, the bulls who appear to be in notable cohesion with the bears may end up getting exhausted where-in the possibility of a steep downfall emerges.
A popular crypto analyst, CrediBull Crypto believes that Ethereum (ETH) may rise beyond $1300 in the next few days which could be followed by a significant drop.
However, despite a drop, the price is believed to sustain above $1000 but may continue to trade within 6% to 8% range for an extended period ahead.
Ethereum’s Volatility at its Lowest!
The slashed price variation despite a significant gain in the volume led to a huge drop in volatility which has fallen to new lows. According to the volatility indicator, the average swing trade accumulates 0.01ETH which is the lowest ever reading recorded in the past 10 years.
Previously, while the volatility rate had dropped so low, the ETH price declined from $11.67 to $7.53. Considering this ratio, the ETH price may now drop by nearly 35% to mark the yearly bottoms at around $780.
Market participants are required to keep a close watch on Ethereum’s volatility indicator which may signal the upcoming trend ahead. The indicator historically remains within 0.03 to 0.05 ETH for several weeks, before igniting a significant trend reversal. Therefore, the ETH price continues to remain under the bearish influence.
Source: https://coinpedia.org/price-analysis/ethereumeth-price-set-to-clinch-above-1300-but-wait-theres-a-catch/