At least for 4 days, Ethereum buyers manage to keep strategically important price zone. It gives a chance to continue the price growth after such a sharp fall on 24 September. After two attempts to break through the price range $155-160, buyers for a few days successfully tested the local price mark $186, where the price always stops, but does not turn the other way. We can see it in history in August, when sellers lost a few days near this price mark. Then the similar situation was with Ethereum sellers. Therefore, if buyers have plans to build an uptrend, they consider this stop as temporary.
On the 4-hour timeframe, we see that buyers are now trying to keep $176. They have been working on it since 25 September and from it a new attempt to break $186 should begin:
However, local prospects that can please buyers are not as bright as global ones, especially given the close of the previous week’s candle. The candle which undoubtedly offset the three-week growth, shows us that sellers are still strong enough. Although, buyers have kept $155-160, to continue growing at such a level of sellers aggression is unwise and most importantly unprofitable:
By testing the upper trend line on the chart of marginal positions, buyers want to continue to reduce them:
Sellers have practically escaped their protracted consolidation and seek to leave historic lows, increasing their marginal positions:
According to the mood of market participants and candle analysis, we see that the prospect of the fall continuation is more probable. However, as long as the price is above $155-160, we will assume that the local buyers attack is not over yet.
Talking about the wave analysis, buyers almost half corrected the fall wave from 19 September, forming an uncertain growth channel:
As we can see, at the price mark $170 passes one of Fibonacci levels and also the trend line of the local channel. Therefore, if Ethereum buyers do not manage to keep this price mark, sellers will quickly get to $155.
So we are waiting for sellers response. Will they be able to test the yellow price zone until the next analysis? See you on Thursday!
Image Courtesy: TradingView