The new week of ETH trading comes to the end and the price continues to move in a stable range of USD 230-280. To be honest, this time, after a weak sellers attack of USD 230, buyers from the first day of the new week began their offensive. So the price zone of USD 260-280 is already being tested for the third time by buyers and the next week should show if consolidation will continue and we are again waiting for a local price turnout of USD 230, or buyers still have enough strength to continue growth.
If we analyze the growth this week on a 4-hour timeframe then we see that serious price stops and attempts by sellers to change the situation were at 2 points: at a test of USD 260 and when trying to break through USD 280:
In two cases, we see a significant increase in volumes, but in the first case, sellers did not manage with USD 250, which coincided with the lower trend line of the growth channel that we have drawn since the beginning of the week. In the second case, the sellers still have a chance to change the situation and for it, they need to fix below USD 260. In this case, the local growth channel from 10 June will be broken and the price will go beyond the price range of USD 260-280, which can be a good signal to fall with the first target of USD 230.
There are no conditions for breaking USD 280 on the daily timeframe now. The volumes are small enough to continue growth and if the trade continues on identical volumes, sellers likely will start falling:
As we see, consolidation is also on the chart of marginal positions of buyers. But this week, buyers have significantly increased their positions:
Sellers behave less actively and do not have a common mood. This is evident in the slow growth of their positions:
According to the wave analysis, the consolidation from 16 May can be interpreted as follows:
We expect another wave (e) after which consolidation should break down with the first target of USD 200. However, if buyers keep USD 230, then the next wave of growth should stay at a price of USD 320:
A weekly candle completely crossed last week achievements of sellers and we think that next week the fight in the price zone of USD 260-280 will be delayed. However, in such a big timeframe, we clearly see that buyers can go through a critical price zone and without increasing volumes by harassing sellers in the price zone, as do Bitcoin buyers. Therefore, we now only have to monitor the price USD 280 and wait for an explicit signal either to continue growth or to continue consolidation.
BitcoinNews is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.
Follow BitcoinNews on Twitter: @BitcoinNewsCom
Telegram Alerts from BitcoinNews: https://t.me/bconews
About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market.
Charts Courtesy: TradingView
