The new trading week on Ethereum market began with attack of the price zone $135-140. Sellers without ceremony immediately got into gear and began to attack the important Ethereum price zone on increased volumes. Now that sellers have managed to update the local low, the price is again within the black wedge and is now moving to its lower trend line. After breakthrough of Ethereum price $180 on 21 November, sellers with aggression and without corrections are lowering the price and nothing can stop them.
The 4-hour timeframe shows that sellers needed 2 attempts to cope with $135-140 and during these attempts, trading volumes were quite high:
Analyzing the previous week, we can conclude that the spirit from that week has gradually entered the present. The reason of it is the closure of the weekly candle which yells to us that the fall will continue. Note, that Ethereum price fall was 25%, with the whole candle consisting of almost a body and only a small pin:
This candle is very similar to the candle from 8 July, after which the price stopped falling at around $155.
Despite the poor climate in Ethereum market for growth, buyers are aggressively increasing their marginal positions. We see in the chart that buyers did not allow the margin mark to get out beyond the wedge. And now they are trying to test the upper trend line:
Buyers consider price fall like a chance to buy Ethereum cheaply and do not see it as a danger.
Sellers yesterday were actively increasing their marginal positions. But today, while updating the local low, sellers have decided to record their profits, apparently seeing a future price rollback:
According to the wave analysis, theoretically, the last wave of fall within the wedge limits is formed. And at the price $135 wave (c) is equal to wave (a):
It should be a serious barrier to continue the fall. So let’s see on Wednesday whether buyers can absorb such volume of sellers and basically stop this week’s fall. After sellers fix below $135, there will be a chance to test $100 and go beyond the wedge. Let’s see on Wednesday whether this scenario will be real. For now, we are expecting a new week of struggle and clarification of relations in consolidation within the range $135-140.
Image Courtesy: TradingView