Probably it is over. So sad and with melancholy, we are talking about the local growth of Ethereum coin. The growth began on 26 September after the test of $155-160 and ended after the test of the black wedge upper trend line. This time buyers were unable to get out of the downward trend, which is clearly slowing down. Now, there is a high probability for sellers to continue moving inside the wedge. They also may test $155 with a possible continuation of the fall to $135.
As we can see on the daily timeframe, buyers could not keep their trend line and this became the second signal of local trend change. The first signal is a failed attempt to update the new local high on 14 October.
At the 4-hour timeframe, we see that sellers were breaking the trend line on increased volumes. But buyers weren’t going to give up so easily, leaving a big pin in the end:
However, it is the only attempt on the part of Ethereum buyers to change the situation. As subsequent candles reduced the price without the need of special volumes. Therefore, we are currently expecting a further price fall with the first local target $168-170. Pay attention to how the price stops near this price mark:
The price stop and reversal in this mark will mean the weakness of sellers. Because in their power sellers managed to break this mark and test the price range of $ 155-160, though not for long. Therefore, for a local signal, we will necessarily analyze tomorrow how buyers and sellers will behave near $168-170.
Marginal chart of Ethereum coin is not as bright as Bitcoin for example, but buyers are also trying to increase their marginal positions:
Sellers are still reluctant to take action and decide to wait out the storm in a good old consolidation which has been going on for 5 days:
According to the wave analysis, considering 2 scenarios, the price is asked to test the mark $135, after which a new phase of growth should begin:
It is not a fact that the price will reach this mark and the probability of a change in the scenario will update in the following analyzes. Although, the potential of the fall continuation is clear. Already on Friday, we will see if sellers will be able to leave untouched the mark $168-170. Also, we will see whether there are prospects for buyers to start the growth earlier. Have a good week!
Image Courtesy: TradingView