The trading week of Ethereum did not leave market participants alone. On the back of Bitcoin, which yesterday was able to update its local low, Ethereum buyers were able to set a new local high. In such a way confidently keeping the path to $240.
The daily timeframe clearly shows an increase in volumes during the last few days of buyers attacks, which is a good news.
In addition, growth occurs without correction and the ambitions of buyers look serious.
However, taking a magnifying glass it becomes clear that corrections are made throughout the day. To take an example yesterday, it is noticeable that before the growth to $220, sellers initially tested $200 for strength .
Now, the $200 price mark continues to be a critical point. If it breaks, Ethereum sellers will easily lower the price to $185:
As you can see from the chart, the price started to confidently move away from the black trend line, which indicates the acceleration of the price.
After a sharp increase of marginal positions, buyers already 4 days have stopped on the spot:
Sellers still can’t break the half year consolidation, but yesterday we saw sellers’ desire to increase their marginal positions. If the price moves according to our scenario and tests $240, then we think that by that time sellers will have accumulated a large number of positions and will expect a fall:
According to the wave analysis, after 3 days of fighting near 0.618 Fibonacci level, which passes at a price mark of $210, buyers continued to move and now stopped at the next level 0.786:
If you look at the picture more globally, at the weekly timeframe, and assume that the price correction has ended and a new impulse has begun, then the first global buyers problem should be at the price mark of $270:
So, now we have to control two price marks – $200 and $240. As the initiative is in buyers hands, let’s see if they can at least test this price mark by the end of the week. Meet you on Sunday. Have a good end of the week!
Image Courtesy: TradingView