Buyers failed to break through and fix above the critical range $138-145.
The correction of the previous Ethereum fall wave is 38.2% and is weaker than Bitcoin correction.
The weekly candle scares away the thought of Ethereum price growth continuation.
Following the test of the upper black wedge trend line yesterday, buyers attack which lasted from 18 December has potentially ended. Overall, buyers managed to raise the price by 26.6%. For most of its time, Ethereum price has been spent in consolidation under a critical range $138-145.
Unlike Bitcoin, Ethereum buyers failed to break through their critical price range. The price stopped in the purple range and buyers did not even try to increase the volumes to globally change the situation in Ethereum market. Probably, liquidity is not enough for the entire crypto market and yesterday was the turn of Bitcoin.
As we can see on the 4-hour timeframe, sellers initially slowed the price growth with the help of limit orders:
After the second unsuccessful attempt of buyers to break through $145, sellers succeeded in generating a new local trend, clearly setting its limits. A tolerable fall without losing buyers initiative is possible up to the price $133. If buyers fail to keep this mark, we will soon again see the test of $115 with the target of the fall continuation to $100.
Marginal positions of buyers continue to decrease, but the chart shows that yesterday’s candle closed with a hint on a local reversal:
For the second day, sellers are not active in the chart of marginal positions. They are trying not to respond to sharp changes of Ethereum price:
According to the wave analysis, the growth in Ethereum market since 18 December corrected the previous fall by 38.2%:
Bitcoin buyers were able to make a correction by 50%. It indicates the weakness of Ethereum buyers and the likely harder price fall when buyers are unable to fix above $138-145.
The weekly candle does not look promising to continue the growth of Ethereum price:
If we pay attention to the volumes, their decrease continues and the current growth is no exception. Therefore, we can’t seriously consider the present growth as a signal to break through the gobal wedge due to the lack of signals. However, let’s take a look at how buyers behave this week and analyze the probability of fixing Ethereum price above $148 on Saturday.
Image Courtesy: TradingView