- Analyst Ali Charts predicted that ETH could face a huge price correction soon.
- ETH’s price rose by 0.49% over the past 24 hours, which left it trading at $1,671.61.
- From a technical perspective, ETH’s price was in the process of challenging the $1,685 resistance.
The leading altcoin, Ethereum (ETH), could be facing a massive price correction soon, according to a Twitter post shared by cryptocurrency analyst, Ali Charts. In the post, he predicted that if ETH’s price dips beneath the $1,600-$1,550 bracket, it could lead to a 37%-45% correction that may cause ETH’s price to drop to $1,000.
In the short-term, ETH was still safe from the steep correction as its price was positioned above the $1,600 level. Data from CoinMarketCap indicated that ETH’s price rose by 0.49% over the past 24 hours. As a result, ETH was trading at approximately $1,671.61 at press time, which was just above its daily low of $1,663.98.
Meanwhile, the trading volume for ETH within the past 24 hours experienced a decrease of more than 13%. This led to the daily trading volume amounting to around $4,056,144,448. While ETH managed to achieve a daily price increase, the altcoin still had some work to do to recover from its poor weekly performance, which remained at -9.58%.
Looking at the daily chart for ETH/USDT, the cryptocurrency’s price had plummeted to as low as $1,550 last Thursday. Bulls were, however, able to revive the altcoin’s price to close the day’s trading session off at $1,681.49. Since then, ETH’s price had been in a gradual climb.
Subsequently, ETH’s price was in the process of challenging the $1,685 resistance level at press time. If ETH’s price breaks above this barrier, then it will have a relatively clear path to climb to the next major resistance level at $1,775 in the following week. Continued buy support could also result in ETH’s price rising to $1,915 in the upcoming couple of weeks.
On the other hand, if ETH’s price fails to close a daily candle above $1,685 within the next 48 hours, then it may drop to the aforementioned $1,550 price point once again. The bearish thesis may be more likely to play out given the fact that the 9-day EMA line was positioned below the 20-day EMA line.
Furthermore, both of these technical indicators were positioned below the 50-day EMA line. This indicated that short-term and medium-term momentum was in favor of sellers at press time.
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