Before the range USD 155-160, the growth dynamics are slowing and the volumes are increasing.
If it will be an unsuccessful attempt to fix above USD 160, it’s important for buyers to keep the mark USD 148 to continue their growth.
In case of a breakdown of the price mark USD 166, the falling trend from 27 June will be completed.
The trading week in the Ethereum market is behind and we see that buyers have not yet managed to fix above USD 160. Yesterday’s candle closed at a price of USD 155 and approximately on 40% consists of a pin. Trading volumes decrease and turn into consolidation. The growth dynamics are slowing and the situation in the Ethereum market looks worse than that of Bitcoin.
However, so far, the initiative is buyers and the transition to growth does not mean a change in trend. For a better understanding of the situation, it is necessary to see at least an attempt of buyers to pass the Ethereum price range USD 155-160 and look at the reaction of sellers. For the time being, sellers are lazily behaving near a fairly large price range, with which were problems in both buyers’ and sellers’ history.
At the 4-hour timeframe, we notice the formation of a wedge:
Each new local high is formed in less and less volume and it indicates the transition of buyers to a passive state. However, even breaking the wedge down does not mean that sellers will continue their fall immediately and break the purple range of USD 136-143. Fall and stop of the price at USD 148 will only show that buyers are willing to keep the price. Then the price range of USD 155-160 is likely to be broken.
In addition to the price chart, the mood of Ethereum buyers is also significantly different from that of Bitcoin buyers:
The marginal positions of buyers are decreasing and the prospect of continuation is quite high.
The mood of sellers remains the same. Thus, over the past two days, buyers have been trying to increase their marginal positions. But against the backdrop of their fall, this growth is lost on the chart:
Nevertheless, as we can see now, the index of sellers’ marginal positions has reached the bottom line of consolidation and the prospect of positions increase is quite high.
According to the wave analysis, the critical point for sellers is at the price mark USD 166:
If buyers manage to close above this mark then the downward trend, which began in June 2019, will end.
In general, if you look closely at the chart, Ethereum price for the third time goes beyond the trend line, but the growth does not continue:
We think that in this way gradually starting the price reversal and the accumulation of positions for the continuation of global growth. Therefore, the global perspective indicates growth continuation. We will talk about the local perspective in the following analysis, summarizing the weekly and monthly price analysis.
Charts Courtesy: TradingView