Sellers continue to dominate the market.
To improve their mood, buyers need to conquer the price mark $167.
Continuation of consolidation in the range $135-160 is a likely scenario for a whole week.
The previous trading week on Ethereum market ended with a test of the purple range $135-140 and a temporary stop of the price fall. Although, sellers managed to upgrade the local low and test $133.5. However, buyers managed to prevent the continuation of the total price fall by organizing correction. As we can see, Ethereum price has again returned to the black wedge and now the trend is moving towards the test of the lower trend line of this wedge.
The previous trading week of Ethereum price did not inspire us to believe that buyers can securely protect the price range $135-140. At best, consolidation in this range will continue, after which buyers will be able to test the mark $167. It is well-evident in history that after a rapid weekly candle, there is always a phase of consolidation and accumulation of forces either to reverse or to continue the trend.
After a 25% fall of Ethereum price, there was no significant increase in volume or activation of buyers who were ready to turn the price. Therefore, this week we will expect one test of the price range $135-140 and analyze the reaction of buyers.
At the 4-hour timeframe we see that now there is a struggle between the two trends. In case of a sellers victory the price will soon fall to the mark $140:
Although the marginal positions of buyers went beyond the wedge, but their rapid fall did not begin:
On the contrary, we see that the decrease of marginal positions stops.
Sellers are slowly increasing their margins, despite the price stop on a likely local bottom:
The mood of Bitcoin and Ethereum market participants is quite different
According to the wave analysis, the wave (v) completes its formation. After the price will fix above $190, we can say that the price correction from 24 June is complete:
Looking at the close of last week’s candle, we can’t say that buyers have increased their strength in the market. Nevertheless, the near end of the trend is quite close. Let’s see if buyers manage to keep $135-140 this week and we will see on Thursday whether the market situation has changed.
Image Courtesy: TradingView