Today, sellers have managed to clear an obstacle on the way to the fall continuation, namely, Ethereum price mark $180. After this, they tested the bottom line of consolidation at the range $155-160. If we analyze the consolidation between $180 and $200, which has been going on for the month since 26 October, we see that it was not so easy to reverse the price to sellers.
Pay attention to the first unsuccessful attempt of buyers to pass Ethereum price $200. On 11 October, buyers were only able to touch this price and after that, sellers organized their local trend. In this case, we see that it has taken some time for sellers to absorb all buyer demand. Looking at the volumes with which sellers have come to the bottom of consolidation, it is still early for buyers to worry:
In addition, the chart also shows that sellers have tested the wedge upper trend line, which buyers successfully broke. By returning the price back to the wedge, sellers will cross all the achievements of buyers and trading in consolidation will continue.
At the 4-hour timeframe, we see that the last time we saw a volume as large as today, was last month. It confirms the importance of the Ethereum price zone. However, it takes a few days to see how the daily timeframe will behave and whether they intend to change anything on Ethereum market.
Regarding mood, the marginal positions of buyers reached the wedge lower trend line and today, there was a change of forces:
As you can see, today’s daily candle can close with a pin. It indicates a likely new wave of increasing buyer marginal positions.
Sellers do not try to increase their position and even show that in the long run, the vast majority will be for their decrease. Take a look at today’s candle and compare it with the candle on ETH/USD chart:
The wave analysis shows that the wave (Y) which started its formation on 20 September was corrected by buyers by 61.8%:
Considering that buyers managed to go beyond the wedge and the fact that buyers have organized a sufficiently deep correction, we understand that the falling trend is gradually subsiding. Therefore, if buyers do not manage to keep the price range $155-160, we believe that the price reversal in the price range $135 is quite real:
So let’s meet on Saturday and summarize the weekly movement of Ethereum price.
Image Courtesy: TradingView