Ethereum price continues to move in the 8% range between $122-133.
Volumes during the fall are systematically reduced, which indicates the need for correction and test of the black wedge upper trend line.
Sellers were unable to fix below the level of Fibonacci 0.5.
Ethereum price movement did not surprise us all week. Since 16 December, after breaking through Ethereum price range $138-145, consolidation in the range $122-133 has formed in Ethereum market. In percentage terms it is 8.5%. Throughout the week, buyers have never been able to at least touch the critical range $138-145. It indicates their great weakness. Compared to the situation in Bitcoin market, Bitcoin buyers are more likely to reverse the trend and initiative. After testing the upper and lower limits of consolidation, buyers are now starting a new local attack with a target $133.
If we analyze what is happening with the volumes in Ethereum market, it is noticeable that strong growth started just after the large volumes on the market:
As volumes grew, they fell proportionally so the trend did not change during the fall. Sellers cannot keep up with the rapid fall by updating local highs, as there are few buyers left in positions. Therefore, by logic, a correction to the black wedge upper trend line would be appropriate. However, we do not see the prerequisites for it yet.
Even more so the price is below the critical price range $138-145, so continuing to fall and break the current consolidation down is more likely given the current chart.
The movement of marginal positions of buyers this week was not too bright:
Marginal positions indicator is near the upper trend line. Considering it, buyers are in a good mood and confident in continuing their growth.
But on the chart of marginal positions of buyers the situation looks brighter:
This week, sellers updated the historical low on the chart of marginal positions. In such a way, they indicate their uncertainty about the fall continuation.
All this happens when the price moves in the 8% range.
According to the wave analysis, sellers were unable to fix below Fibonacci level 0.5 and update the previous local low:
It gives buyers a chance to break consolidation $122-133 next week and try to fix in the price zone $138-145. After fixing over $145, the final target of buyers is $190.
Sellers have practically managed to correct their previous wave of growth by 78.2% since December 2018. Therefore, the test of $113 is quite real, given that the scenario of the test of $138-145 is currently an alternative rather than a basic one. Let’s see what buyers in Ethereum market can change by the end of the year and summarize the overall situation on Tuesday.
Image Courtesy: TradingView