A good lively start does not always give rise to a successful end. Ethereum sellers were able to defend the upper trend line of the black wedge, then successfully organized the attack. Ethereum buyers are not so confidently keeping the price compared to Bitcoin buyers.
Comparing the exact and weak correction of Bitcoin sellers and the sufficiently deep correction of Ethereum sellers, the level of interest of market participants in these coins is clearly evident. One percent was not enough for buyers to test our target USD 185, but a false breakdown of the wedge black trend line happened:
The classic false breakdown on increased volumes which shows buyers’ weakness has led to the formation of a local falling trend which buyers are now trying to reverse.
In fact, sellers were able to test the pink price zone where buyers gained strength in the form of volumes for the USD 183 test:
Therefore, as long as the price above this price range, buyers have a great chance to retest the wedge black trend line.
On a daily timeframe, yesterday’s candle closed with a small body and a big pin, indicating the willingness of buyers to keep the price:
If Ethereum buyers do not take the initiative to sellers today, an attempt to break through the wedge black trend line is inevitable. However, if buyers are passive, then we will expect another fall to the pink price zone. And in the next analysis, we will determine the probability of breaking it.
Consolidation on the chart of buyers’ marginal positions has been going on for a month. Probably, after the price exit from the black wedge the situation will change dramatically:
As for consolidation on the chart of marginal positions, sellers are certainly favorites in this case. Since on their chart consolidation has been going on for 5 months. For the last two days, sellers have been passively trying to increase their positions. Although, it does not inspire trust in their confidence:
Talking about the wave analysis now it is completing its formation wave (iv). Until the red trend line of this wave is broken, we believe that buyers’ attack is not over:
Another critical point is the level of Fibonacci 38.2%, which was broken by sellers yesterday, but the price closed above this level. After breaking the red trend line of the wave (iv), the next stop is USD 155. However, Ethereum buyers now have a real chance to get out of the black wedge and continue their growth. Let’s see if buyers take this chance by the end of the week!