All the positive and hopes which Ethereum coin gave to buyers, all the two-week growth that buyers were trying to prove that they were better than Bitcoin buyers, had dissipated in just a few hours. In the previous analysis, we wrote about two critical points from which buyers will have a chance to grow – $200 and $187. However, during Tuesday, sellers managed to fix below $200, and yesterday, without problems, flew $187. At the 4-hour timeframe, we see that due to one candle and breakthrough of $ 187, the price has fallen more than 20%. In such a way testing the important price range of $155-160:
This range was a main problem at the beginning of the price growth in December. Ethereum buyers needed more than 4 months to conquer this price zone.
The importance of this yellow range is clearly visible in the hourly timeframe. This is where buyers have completely absorbed sellers’ supply on anomalous volumes by sharp fall stop and forming a consolidation:
The sharp price fall did not scare Ethereum buyers and did not make them panic. It can be seen on the chart of marginal positions:
Over the last two days, sellers have made a lot of efforts to finally start a trend movement in the chart of their marginal positions and have reached a critical point:
The price fall, which began on 20 September, has already corrected its previous growth by almost 78.6%. Specifically, sellers have not yet had the strength to test this level of Fibonacci at the price mark $143:
Keeping this price, buyers will have the chance to continue their growth in a 5-wave structure. Where, the second wave very often adjusts the first wave quite deep. The critical point in this scenario would be the price mark $250:
Otherwise, looking at the pace of sellers, the price will go to update the previous low, which was set in December 2018. We are waiting for the end of the week and we will make the final result and select the actual scenario. Let’s see how long sellers will be able to be active and whether they can prevent price stop in long-term consolidation.
Image Courtesy: TradingView