Ethereum buyers do not give up and crave revenge. After the breakdown of the bottom trend line, in the form of triangle, the consolidation was formed. Buyers managed to break it down with a shot, thus answering the last question of the previous analysis.
Taking the initiative, buyers have not yet demonstrated global market dominance. First of all, it is evident in the volumes that have slightly increased since the price went out of the triangle:
Secondly, after the test of $200, price remains below the blue trend line, and as they approach it, sellers are beginning to show their strength and slow down the price. Therefore, the next step for buyer success should be a narrow consolidation below the trend line to identify sellers. Then you can hope for a price return to the growth channel.
If you analyze the price movement on the hourly timeframe, the question is why, when touching the trend line by buyers, sellers are very passive defending themselves and not trying to show who is the owner in the current situation?
This fact is confusing and gives a chance for the scenario of the price returning to the growth channel, especially since on the weekly timeframe, we see a false breakdown of the trend line:
So we think the next week should be decisive and could show us if sellers can continue to fall.
The mood of Ethereum buyers this week did not deteriorate significantly. It is clearly seen in the marginal positions of buyers that are in narrow consolidation after a large increase:
Sellers tried to break out of the 4-month consolidation this week, but apparently decided to move on to next week:
According to the wave analysis after the test of Fibonacci level 38.2% , Ethereum buyers organized a price rebound (this fact has not changed from the previous analysis). If you take a local situation, then the new local impulse, which began on 7 August is now being corrected by buyers. If buyers are able to fix above $200, then the next critical point will be in the price mark of $215 :
So, we have to wait for answers from sellers, will they allow the price to return to the growth channel? Let’s see on Wednesday and continue to follow the blue trend line. Have a good week!
Charts Courtesy: TradingView