For almost 2 weeks, Ethereum buyers and sellers have been recovering after breaking through the global blue trend line, which buyers had been keeping for half a year.
The consolidation looks like a triangle that still has trading space to 26 August (before the start of the new week). After breaking this trend line and to this day, we have not seen any serious intentions on the part of sellers to return the price. If we pay attention to the daily timeframe, or more precisely the volumes, we do not see special interest from buyers:
Currently, the volumes are one of the smallest in the last two months. In this way, it is difficult to stop and change the trend. In view of this fact, we continue to follow the scenario of continuation of the price fall to the price range of $155-160. However, it does not mean that the buyers correction is over. As this is a triangle, the probability of a price shot is difficult to predict. However, even when the price shot up, Ethereum buyers will immediately have a problem with the price mark of $220:
As we can see, this price passes a trend line and a critical point, which historically was achieved by sellers with great difficulty.
The marginal positions of buyers are not panicky, but are steadily decreasing. We think that during a breakthrough of the triangle down, the positions will close in an interesting way:
Ethereum sellers, whose marginal positions have been for 4 months in consolidation, have been trying to break this history. But for the last 3 days, the positions continue to close:
According to the wave analysis, the situation is unchanged, since the price is practically in place. $175 continues to be the critical point which will deter hungry sellers from testing the price range of $150-160:
Is there a positive scenario for buyers? Perhaps. However, in any case, it based on the test of $155-160. If you look closely, sellers have stopped sharply updating their local lows and the price goes into trading in the wedge:
Often, these situations are reversible and buyers only need to break through the upper trend line at the price mark of $200 to give themselves a chance to return to the global growth channel. Looking at the black wedge, we understand that the price can move in it until 10 September. Let’s see if we have enough nerves to keep track of such price movements. Let’s meet on Sunday and summarize the week. Also we will analyze how the week candle closes and whether it will affect the price of the next week. Have a nice weekend!
Image Courtesy: TradingView