After an unsuccessful attempt by sellers at the beginning of the week to break the bottom trend line of the triangle down, buyers decided to take the initiative and were able to break through the local growth channel. However, globally, the price continues to stay in the triangle.
Globally, we see small volumes. If we analyze the growth of Bitcoin, then we see that the Ethereum does not grow less aggressively. However, sellers do not show a desire to change the situation. After 3 May, buyers made an attempt to break through the upper trend line of the triangle, but sellers are trying to withstand them with far lower volumes. There is no clear-cut force and aggression of sellers:
Buyers do not allow sellers to fix below and form pins. Now the price continues to be uncertain and can sharply shoot up or down. This fact also confirms the volumes which are systematically reduced:
If we analyze the mood of buyers, then we see that the marginal positions were systematically closed:
Marginal positions of sellers increased during the week. You can also notice that seller positions are moving in the expanding triangle and now buyers have a good prospect to continue to increase their positions:
If we analyze the weekly timeframe, then it can be noticed that after the breakdown of the price zone of $155-160 (the most important price zone of this coin in our opinion), buyers can keep the price above this zone during 4 weeks:
According to the wave analysis, after breaking the triangle up which is likely to be at this point, buyers will continue to grow to $235. In this case, the wave C = A * 1,618:
At this price, there is also good liquidity through which it is not so easy to get through. Therefore, we will expect a correction from this price.
In the second scenario, if sellers can break through the triangle down, the first serious resistance sellers will meet at a price of $122. The ultimate target is $83:
Therefore, we only have to continue waiting for the price to exit from the triangle and to monitor the development of one of the likely scenarios.
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About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market. Image Courtesy: Bitcoin News