Buyers managed to break through the critical price zone $138-145.
If buyers fix above $168, then the next target is $181.
Yesterday’s growth corrected the previous wave of fall by 61.8%.
Yesterday’s trading day on Ethereum market ended with the price growth of almost 15%. Despite the weak upward trend of Ethereum price, which began on 18 December, buyers managed to break through the critical price zone $138-145. They took the initiative from sellers.
In addition to the breakthrough of the important price zone, there was a breakthrough of the global wedge upwards, in which the price was trading from the end of June 2019. Trading volumes during the breakdown of the critical point were significantly increased. And practically the whole daily candle consists of body, there is only a small pin.
If we look more closely at Ethereum price growth on the hourly timeframe, it can be seen that after breaking the upper trend line of the wedge, each subsequent candle was closed with an updated high and increased volume:
The largest volumes are in the local price zone $163-164, in which sellers managed to suspend the sharp growth. Buyers are now trying to fix below this price zone to arrange a correction.
The growth prospect in Ethereum market is present to the price zone $180-190. Buyers were unable to conquer this zone in October and as a result – the price fall continued.
Due to yesterday’s Ethereum price growth, buyers are trying to move beyond the growth channel on the margins chart:
This growth has more actively revived Ethereum buyers than Bitcoin buyers, which we considered in our previous analysis.
The mood of sellers was almost equally divided yesterday, forming a daily candle with pins both up and down:
Ethereum sellers did not increase positions as sharply and insatiably as Bitcoin sellers.
In the wave analysis, we decided to use Fibonacci arithmetic scale, because it works better on Ethereum chart:
Due to yesterday’s growth, buyers were able to correct the previous wave of fall (c) by 61.8% and to stop before the price $168. If buyers cope with this mark, the next target is $181. Let’s see if buyers keep their buying activity and aggression and on Friday we will summarize the results of the working week of Ethereum price movement.
Image Courtesy: TradingView