It’s hard enough for Ethereum buyers to raise the price and try to impose their game on sellers. Yesterday’s initiative ended with a red candle with a pin on the daily timeframe, which once again showed that sellers were not ready to give the initiative. At least with such small volumes with which buyers want to achieve something.
After the price slowed down before the mark $168, sellers have signaled that buyers can reckon on a counterattack. And the lack of confident growth can only indicate that the foothold for it is below.
At the 4-hour timeframe, we see that a blue trend line has been formed. But, pay attention to the last local high:
This is how the interception of initiative looks like, when after setting the high at relatively high volumes, the next candle completely absorbs the previous one. And at the next attempt to set the high, sellers make it clear that the situation is now under their control and they form a candle upwards.
Therefore, our scenario of the fall continuation, namely the breakthrough of $168 and $155 test with a possible continuation to $135, is still valid. The critical point of this scenario is the price mark $182. This is where the top trend line of the wedge is passed, where the price has been trading since June 2019. If buyers are able to fix above it, they will have a great chance to break this 4-month downward trend.
For the third day, Ethereum buyers are trying to increase marginal positions. However, against size of the previous candles, it all looks like child’s play:
A different story is sellers. They clearly show that they want to continue reducing their marginal positions:
According to the wave analysis, the current wave (c), which began its formation on 11 October, was corrected by buyers by 38.2%:
After testing this mark, buyers immediately started having problems. If buyers are unable to solve them and continue growing at least to $182 – such a weak correction wave (c) will only mean a sharp continuation of the price fall.
In general, on the weekly timeframe, after closing the previous candle, we see that this week, sellers are obliged again to try $168 and will probably continue to fall to $155. On Thursday, we will see if there are any new signals for it in our new Ethereum price analysis.
Image Courtesy: TradingView