Ethereum continued on surging to score another historical high at $130 earlier today, on Poloniex. Interestingly enough, ethereum’s price has double during the past three weeks, as one ethereum coin was worth around $65 in the beginning of May. I expected ethereum’s price to exceed $100 in 2017, yet I did not ever think that this will happen in the first half of the year. As I mentioned in the “promising cryptocurrencies to buy in 2017” article, even with the recent price surge, ethereum is still undervalued, so even more higher levels will not be surprising for me by the end of the year.
Price Correction Is Imminent On The 4 Hour ETHUSD Chart:
If we take a look at the ETHUSD 4 hour chart from Poloniex, we can see how the market has been bullish starting from the end of April. The first price surge started on the 24th of April and took price from $53 all the way up to record a high of $100 on the 5th of May. This was followed by a downwards price correction attempt that pulled price down to around $71 on the 9th of May, before starting a second price surge that has been pushing price to higher levels during the past 10 days. The bullish wave has been intense during the past 48 hours, as shown by the successive 9 bullish candlesticks forming on the 4 hour ETHUSD chart from Poloniex (look at the below chart), so a new high has been recorded every 4 hours during the past couple of days.
The bullish wave, that has been controlling the market since the later parts of April, is characterized by bullish bursts followed by downwards price correction attempts, as shown by the green and red arrows on the above chart. The first downwards price correction attempt (the first red arrow) took price down to around 50% of the gains achieved during the first price surge (the first green arrow). The second price surge (the second green arrow) was completed by recording today’s high of $130, so a price correction wave is expected to take price down to around $100 during the next few days (i.e. 50% of the gains achieved during the second price surge).
Conclusion:
Ethereum’s price continued on rising today to record another historical high of around $130 on Poloniex. Analysis of the charts shows that a downwards price correction wave is imminent, so we can see ethereum’s price drop down to around $100 during the next few days.
Chart from Poloniex, hosted on Tradingview.com
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