Sellers were unable to keep the advantage and update the local low for the second time.
Buyers develop their attack with the aim of breaking through the price range $138-145.
In case of fixing above the black wedge, the final target for buyers is $290.
A good day turned out to be for buyers in Ethereum market. Of course, looking at the daily timeframe, significant changes of Ethereum price movement is not noticeable. The price is still in consolidation and below the price range $138-145. However, the weakness of sellers and the failure to update the local low and the absorbing counter attack of the buyers give the chance for a decent assault on the purple range. And in the long run, the test of the black wedge trend line.
On the 4-hour timeframe it is visible that sellers attack went off on 2 January after sellers’ broken red candle:
Pay attention that after this 4-hour high-volume candle, the next two candles go by inertia without much support. It is indicated by significantly reduced volumes. Thus, buyers were able to seize the initiative and reverse the local trend of sellers. And again Ethereum price stopped at the upper limit of consolidation.
Tomorrow will be important day enough to understand the growth prospects in Ethereum market. If tomorrow we see a failed attempt to break through the price range $138-145, then consolidation will continue and sellers will try to lower the price to $122. Otherwise, buyers will be able to compete for the breakthrough of the black wedge, fixing above $145 and growth continuation to $210.
Despite that marginal positions are near historical highs, buyers continue to increase them:
Sellers have significantly reduced their marginal positions today, killing the hope for probable growth:
According to the wave analysis, the situation in Ethereum market remains unchanged. Sellers corrected the previous wave of growth by 78.6%. Already 3 week there has a chance to close with a large pin down, which may indicate the completion of the fall wave (C):
If buyers succeed in fixing above the black trend line of the wedge, the fall wave from 24 June will be completed. So, the new wave may be closed at $290 with a previous stop at the price $210. Let’s see how the weekly candle closes and on Sunday we will sum up the results of the weekly movement of Ethereum price.
Image Courtesy: TradingView