Today, the situation with Ethereum coin is moving according to our main scenario. Yesterday, sellers managed to test a critical point for buyers, namely the price range of $155-160. After a confident breakthrough of the price mark at $168, sellers won’t be able to stop. However, if we compare how Ethereum buyers reacted to the yellow price zone test of $ 155-160, here we saw more aggression than in the case of Bitcoin buyers.
As we can see on the daily timeframe, sellers were able to lower the price by almost 11% a day. But, 60% of the candle length is a pin, which indicates the interest of buyers to buy in this price zone. It does not mean that sellers will not be able to continue their fall and break this zone. Although, it is clearly visible slowdown of the fall and in the near future, a price reversal is inevitable.
It is very interesting to see the volume distribution on the 4-hour timeframe:
Pay attention that for breakthrough of $168 not much volumes are required as for the test of $155-160. However, the last attempt to continue the fall from sellers took place on the highest volumes for the entire attack of sellers. The candle which formed totally did not match the volumes. It emphasizes our opinion about buyer interest in this price zone.
Ethereum buyers try not to express their mood and in the chart of marginal positions we did not notice a reaction to the sharp price fall by 11%:
In this regard, Ethereum sellers have shown themselves to be more emotional. For the second day, they are trying to increase their marginal positions and make another attempt to break the vicious circle of consolidation, which has been going on for half a year:
According to the wave analysis, the price continues to form, in our opinion, the last wave of fall in the black wedge. Now, the price has stopped at the level of Fibonacci 0.618:
To complete the trend of sellers, it is enough for buyers to fix above $168. So, it is too early to talk about buying this coin. Globally, buyers’ last hope is at the price mark $144. Exactly here sellers will correct the wave of growth from December 2018 by 78.6% and then the price reversal is probable:
Therefore, the turning points are defined and now we just have to wait for the appropriate signals. Nevertheless, initiative and power are in the hands of sellers. Let’s meet at the weekend! We will do a weekly analysis of this coin and try to predict the continuation of the price movement scenario.
Image Courtesy: TradingView