A weekly candle of Ethereum trading closes mysteriously and without passion. Trading week was in 10% consolidation, in which both buyers and sellers tried to turn the situation in their direction. But, it all ended with false breakdowns with pins or a sharp response from the opponent. Initially, on 29 October, buyers tried to fix above the price mark $185. But, on 30 October, sellers responded and returned the price below that mark and tested $180.
In our opinion, $180-185 is the main price range where enough liquidity has gathered and uncertain price exits beyond this range have not yet been successful. At the end of the week, the situation has changed a bit we think, although the price remains practically in place. Pay attention that on a daily timeframe, sellers never allowed buyers to fix at least on a daily timeframe above $185:
This fact suggests that Ethereum sellers control the current situation and do not yet consider it necessary to start their main attack.
Considering the situation under the magnifying glass it is clear that after 30 October, the trading range has narrowed to $5. It is difficult to estimate buyers and sellers strength precisely on this local range. Since the volumes at the limits of consolidation are the same and false breakdowns of each limit are also present:
So, the price exit from this 3% range will show us the short-term perspective of the price movement. At the moment, we continue to wait for the fall waves with targets at $170 and the final one at $155.
The weekly situation on the marginal positions of buyers remains unchanged. It gives a serious hint that buyers expect a sharp decrease in positions, which may affect the price fall:
Sellers’ marginal positions have again tested the bottom line of consolidation and are now ready to increase their item:
According to the wave analysis breakthrough of $155 and the test of $144 will correct the growth wave from December 2018 by 78.6%. This mark will be a critical point for Ethereum buyers to continue their new much stronger growth:
Looking at what buyers were able to respond during the 5 week candles to sellers, who lowered the price by 26% from 23 to 29 September, the probability of a new fall wave are much higher. On Wednesday we will analyze whether sellers are able to realize this scenario. Have a good week and stable profits!
Image Courtesy: TradingView