A serious fight of power has unfolded on the Ethereum chart. Emotional confrontation between buyers and sellers surely overshadows the situation with Bitcoin. Each new seller attack ends with an instant counter attack. As a result, a pin is forming:
The last 4-hour candle shows that sellers have clearly entered the territory of buyers. Because, apart from the pin, the closing price was higher than the opening price.
As we can see on the hourly timeframe, after trying to fix below $175, buyers were able to repel the attack on high volume:
And if you compare this volume with other weekly candles, we can conclude that the current price zone is important enough for buyers. We also noticed an interesting price zone, which we highlighted in blue. The fact is that within its limits, the price is constantly consolidating. Although, buyers were not able to fix above. Now, sellers are trying to keep the blue range and if the sellers fail, the price will easily reach $185.
On a daily timeframe, we see how hard sellers are getting their price down. And how easily the price was growing during 7 and 8 September:
Therefore, at the moment the local initiative belongs to sellers, but globally the buyers look stronger, but passive.
Talking about the marginal positions of buyers, we see changes in mood. After the recent position closures, Ethereum buyers again have a desire to continue their growth and increase their marginal positions:
Sellers also decided to increase their positions after their stable closing for a week:
Despite the price exit from the black wedge, which took place without increased volumes, buyers did not manage to fix themselves above the price mark of $185. And if buyers can’t keep $175 right now, according to the wave analysis we should expect continuation of the fall to $153 with a final target $133, and the black wedge breakdown will be considered as false.
Why do we call in question the black wedge breakdown? We would like a confirmation on the weekly timeframe where we only see volumes decrease and passivity increase:
Therefore, without fixing over $185, Ethereum buyers shouldn’t celebrate just yet. We hope the weekend will make significant adjustments to the market situation. Meet you on Saturday and have a good end of the week!
Image Courtesy: TradingView