Sellers lose strength in the price zone $140-145.
Sellers’ marginal positions have sharply decreased under the influence of yesterday’s price growth.
$171 is still the final point of probable growth.
Yesterday’s situation with the emotional local price reversal in Bitcoin market had impacted Ethereum price. However, the range of Ethereum price movement was lower, around 7%. Ethereum buyers tend to be more aggressive and show more volatility. It indicates bigger interest in Bitcoin than Ethereum at the moment.
As prices continue to go deep into the purple range, there is a noticeable activation of buyers and a search for support for breaking the sluggish falling trend. Yesterday’s buyer trick can be seen as the first signal for growth with a target $167.
Looking at the 4-hour timeframe, it is clear that the local trend of the fall was broken. Now, the price is above the upper trend line of the falling channel:
Thus, we risked drawing a likely new channel of price growth for the next 2-3 days.
Unfortunately, yesterday has not had a positive effect on the mood of buyers and they continue to systematically close their marginal positions:
Of course, yesterday’s candle does not look panic or sharp, and it seems that if the price volatility is lower, the result on the margins chart would be identical. However, the mood of Ethereum buyers is significantly different from that of Bitcoin buyers.
The situation is quite different for sellers and the effect of price changes on sellers’ marginal positions is clearly visible:
The candle was closed with practically no pins and made it clear that the continued closure of sellers’ positions is very likely.
According to the wave analysis, sellers managed to correct local growth of buyers by 50%:
It indicates a probable continuation of growth from 25 November to $171. So, buyers can complete their growth, which in turn corrects fall from November 2019 by 61.8%:
In the end, we can identify a more accurate target of the growth end in the growth process by analyzing the nature of price movements. We will meet on Friday and analyze the weekly price movement in Ethereum market.
Image Courtesy: TradingView