Despite the fact that Bitcoin price has passed a critical point (you can read about it in our Bitcoin analysis), Ethereum buyers are trying to keep the bottom line of consolidation. So far, Ethereum price has not gone beyond it. This fact shows that Ethereum buyers better keep the price. But the prospect of the fall continuation and the test of $155 is very high.
Analyzing the daily timeframe, we see that during the growth buyers have relatively small volumes. Accordingly, candles look sluggish and passive. The price fall is accompanied by more volumes and the candles look confident. Therefore, the breakthrough of $177, in our opinion, is a matter of time. Acceleration of the fall after breaking Ethereum price $177 is quite probable. That’s why we think that to see the price mark $155 by the end of the week is a very real scenario.
The 4-hour timeframe clearly shows how the consolidation has changed since 6 November:
Initially, buyers organized their local trend, now sellers have approached their trend to a critical point.
Marginal positions of buyers continue to move in the formation we draw and now move to the lower trend line of the wedge:
If we break this line, Ethereum price will sharply go down and in a panic fall, support levels may not work.
Sellers continue to play the game “Little by little, one travels far” and slowly try to increase their marginal positions, changing the negative mood:
According to the wave analysis, at the price mark $175 passes a critical point in the form of the level of Fibonacci 0.618:
If buyers do not keep this point, then the prospect of the fall continuation is $169 with the final target $159.
Overall, buyers’ attack which started on 30 September looks pretty passive and the current fall is pretty natural. So we look forward to how sellers will finish their attack. And see if buyers can organize more aggressive growth to continue their trend. Meet you on Thursday in a new Ethereum market analysis.
Image Courtesy: TradingView