With the latest price drop in the first half of this month, Ethereum has reached a new low. Ethereum, as of late, has been estimated to be worth around $1,420. Ethereum\u2019s future, though, appears to be gloomier at the moment.<\/p>\n
The current price of one ether is below the 61.80 Fibonacci level, which is somewhere around $1,340 at the time of this writing. Any progress made since early September has been lost in the recent market downturn.<\/p>\n
The coin still has some chance of being salvaged, though. There has been a lot of volatility in the financial markets since the market crash on September 13 in response to the CPI report and interest rate hike.<\/p>\n
In response to the recent negative developments in the U.S. economy, stock prices and cryptocurrency prices fell precipitously. However, Ethereum has a chance of gaining 10% before it resumes its backward motion.<\/p>\n
On Jittery Traders & Federal Reserve Rate Hikes<\/p>\n
Fear has spread among traders and investors due to the combination of historically high inflation and the Federal Reserve\u2019s quantitative tightening initiatives, which center on a potential 1% interest rate hike.<\/p>\n
The market\u2019s reaction to this newfound anxiety was a precipitous drop almost instantly. The price decreased by 26.02 percent from the 10th to the 18th of September, effectively erasing the purported recovery seen in late August.<\/p>\n
There are two possible ways for the price of Ethereum to recover:\u00a01- investors will \u201cbuy the dip\u201d in response to a price decline, or\u00a02- investors will \u201cHODL\u201d until the price recovers to normal.<\/p>\n
Scenario one is more probable, as buying the dip will result in a profitable investment for traders. With the Stoch RSI indicators providing strong oversold signals, it is possible for the market to see increased purchasing activity as anxieties recede.<\/p>\n
Recent market movements are also consistent with the XABCD harmonic pattern. This can be a buy signal for traders, resulting in a 10 percent price increase relative to the present price movement.<\/p>\n
Second Scenario Might Lead To Another Pain For Ethereum<\/p>\n
If Ethereum is ever to rebound, bulls must generate and maintain sufficient momentum to overcome the current market\u2019s worries.<\/p>\n
The momentum must also surpass the 1,467 price range, as failure to do so will impede future uptrends.<\/p>\n
The support for this hypothetical bull rebound is $1,243. Any downturn from that point can provide the bears with sufficient momentum to break the 78.60 Fib level. This could be the case if market confidence is not restored.<\/p>\n
Buyers and holders of Ethereum should also monitor other currencies. With a correlation value of 0.72, any additional decline in Bitcoin\u2019s price will prompt a sell-off in Ethereum and other altcoins.<\/p>\n\n