The recent price jump enabled the second-largest crypto, Ethereum, to rise above the mandatory resistance of $1800. The price has dropped below the bullish regions during the recent price crash, which appears to have been reversed at the moment. However, the validation of the recovery could be when, the ETH price clears the crucial levels close to $1900, which may further trigger a bullish upswing beyond $2000 soon.
The price is currently trading within the crucial resistance and support levels between $1845 and $1758. The price soared above the 100-D EMA levels but is facing trouble rising above the 200-D MA levels. It faced rejection during the last trading day and may also do so until the day’s end as the bulls appear to have exhausted themselves to a large extent. Hence, if the price experiences rejection here, then a notable pullback may be expected.
Massive Correction Haunts the Ethereum Price Rally
Besides, a popular analyst, Benjamin Cowen, also predicts a massive Ethereum correction is on the horizon. The analyst in a video says that the second-largest token’s trade setup displays the possibility of a major correction very soon. Cowen specified that the ETH price may retest the long-term trend indicator before it begins a magnificent bull run.
The analyst considers the logarithmic regression band, which is designed to track the fair value of an asset.
“What I think is going to happen is that we either go down to the regression band or we go sideways until it catches up. Now if we were to dump now, if we were to dump now, if we were to dump to what I’ve called home before, it would actually correspond to the prior low,”
Considering the worst-case scenario, Benjamin says that Ethereum can also mark the March 2020 lows below $500. However, these targets currently appear to be pretty distinct as the ETH price continues to show significant strength.
Source: https://coinpedia.org/altcoin/here-are-the-possible-scenarios-for-ethereum-eth-price-may-withness-a-huge-drop-soon/