After heavy stress and intense movement, rest is always needed. The cryptocurrency market is no exception. After the triumphant breakthrough of the blue trend line by sellers and the USD 175 test, market participants calmed down and met in a local consolidation battle. The last 4-hour candles have record low volumes. Ethereum buyers are eager to break through and fix at least above the price mark of USD 190.
At the moment, a triangle has been formed in which the price can be traded today and tomorrow. Buyers are now showing the ability to keep the price and not let the sellers down. In such a way, they create false breakdowns on increased volumes. It is perfectly visible on the hourly timeframe:
This fact indicates that sellers in this section of the chart do not have enough strength to continue the fall. However, do they have the strength to keep the upper line of the triangle? It would be enough to take Ethereum buyers through long consolidation and continue their plan.
Therefore, after the current sellers’ attack, it must be clear whether the fall will continue from the current price range, or buyers will be able to correct the price higher, starting at USD 197-200.
So far, buyers are not very upset with the breakthrough of the global trend line. And they are not trying to close their positions:
It means that buyers panic may start later and this will result in a sharp price fall in the short term.
Sellers are trying to exit from a consolidation of their marginal positions upwards, in which they have been since April 2019:
According to the wave analysis, after the test of the first critical point, which we mentioned in the previous analysis, the expected rebound is now happening and buyers have reached their first target:
On the chart, we have pointed out three targets where the correction may end. In any case, we think that this is just the beginning of the fall. Probably, Ethereum buyers will have to survive the price lowering to USD 155 and USD 135 in the end. Although, buyers can still enjoy their local initiative. Let’s see if buyers can fix over USD 190 by Monday and test USD 197-200. Have a good weekend and see you in the next ETH analysis!