Buyers managed to test the price zone $138-145 without sharp counter-attacks from sellers.
The consolidation range is narrowing and to break it down, it’s enough for sellers to lower the price below $130.
Local target for buyers is $143; global is $210.
Yesterday trading on Ethereum market was one of the most passive in the last month. Market participants tried to set a record by volume and by candle size. Yesterday, Ethereum price was moving in the range of 2.5%. It is strange to see such a stop after a sharp upward price movement and even near the upper limit of consolidation. There always was a hard fight. Today, buyers are trying to develop their attack and they have already tested the critical price zone $138-145.
The 4-hour timeframe shows that buyers have barely touched this range. They have not yet received a sharp response from sellers:
The level of volumes during the second attempt to break $138-145 is less than during the attack on 3 January. It indicates a decrease of buyers pressure. To break through such an important range, they need to gradually increase volumes to break through sellers’ limit orders. So far, everything seems to be a test of the upper limit of consolidation to continue the movement of Ethereum price within it.
As you can see in the chart, the trading range is narrowing with a blue trend line. To break the created triangle, sellers need to fix below $130 to confidently start a new wave of fall in Ethereum market up to $115.
If you analyze the marginal positions of buyers, it is noticeable that for quite a long time the indicator is near the upper trend line of the channel:
In addition, marginal positions are not actively moving neither up, breaking the channel and accelerating the trend nor down, consolidating in the newly created wedge.
As for sellers, today they managed to update the historical low and break the bottom trend line. The indicator of the marginal positions has never fallen below yet:
According to the wave analysis, buyers are fixing above the level of Fibonacci 0.618. It gives them a local perspective of continuing their growth to the level $143:
Global targets for buyers remain unchanged. If Ethereum price is fixed above the black wedge then the first serious stop will be at the mark $210 with possible growth continuation to $290.
The last two weekly candles on Ethereum market are closed with large pins down, giving buyers a chance to change the market situation:
Nevertheless, buyers can’t win the range $138-145 for the second week. If we see another such candle on the weekly timeframe next week, it will look like a correction after the fall and the initiative will go into the hands of sellers.
Image Courtesy: TradingView