The rest and accumulation of strength before the new movement still continues after the merry fall on 24 September. After re-test of the USD 155-160 price zone yesterday, the price continues to be above the yellow price zone. It gives Ethereum buyers a chance to try to test the price mark USD 200.
Buyers are now trying to exit from local consolidation and fix above it. At the 4-hour timeframe, we see insufficient amount of sellers volumes during the second attempt of USD 155-160 attack. It adds a few more percent to the probability of buyers counterattacking at least as a correction:
Analyzing the hourly timeframe, you can select a local price zone that buyers can rely on during their current counter-attack attempt. If, after the test of this price zone, we see the weakness of sellers in the form of low volumes, pins or passive small candles – then the USD 200 test is very likely.
The chart of buyers’ marginal positions shows little or no reaction to the sharp price fall. However, the positions are near the upper trend line of the channel:
But ambitions of Ethereum sellers to exit from consolidation on the chart of marginal positions are quite high. Now, they are trying again to break free:
Ethereum buyers managed to fix above the first level of Fibonacci. Which shows that the previous fall wave, which ended on 24 September, is now corrected by 23.6%. And the price seeks to test the next level USD 181:
Looking at the weekly timeframe, it becomes clear that even if buyers test USD 200 to the end of the week, the initiative will still belong to sellers. In the next week, the price zone USD 155-160 will be violent again:
Although, now the pin of a weekly candle is practically the same as her body. Nevertheless, in a week sellers managed to go the same way that buyers did for 3 weeks. Therefore, in our opinion, Ethereum buyers will still be suffering at least over the next week. But what kind of suffering we will see on Monday. Keep your hand on the pulse of prices with us!
Charts Courtesy: TradingView