The culmination of Ethereum trading last week was the price exit beyond the local triangle limits, where market participants sort out their relationship throughout the week. Triangle breakdown happened and the price movement did not happen. Sellers have barely managed to update the local low. If we draw a new potential channel of price movement, we see that Ethereum sellers have not even tested the channel’s bottom trend line.

The price stop took place in the local price zone $165-167, where not too long ago buyers organized a place for positions set in order to start their trend movement. Since, after the triangle breakdown there has not been a sharp fall on increased volumes, it can indicate a false breakdown. So, we will not pay attention to it as a signal for action. Instead, fixing a price below $165 should drastically lower the price to the global price mark of $155. As we see a slowdown of the price fall in the green channel, we may also consider critical point for sellers at the price $175:

Ethereum Technical Market Analysis 7th October 2019

In addition to a clear consolidation limit in the past, the upper trend line of the falling channel is now passes this mark. Having fixed above it the way to $186 is free.

The daily timeframe confirms the lazy entry of the price into the recent trading zone. Although the fall looks uncertain and weakens, it is worth waiting for a signal from buyers who will show with volumes that they are ready to start a new step. Passively slow to fall without much volume, the price can fall for a long time.

Ethereum buyers have not desire to grow yet and they show it on the chart of their marginal positions:

Ethereum Technical Market Analysis 7th October 2019

The prospect of closing positions seems quite big.

Step by step, buyers are pushing their dream and trying to get out of the semi-annual captivity of consolidation on the chart of marginal positions:

Ethereum Technical Market Analysis 7th October 2019

Globally the previous week showed that sellers are not yet ready to give their initiative and the proof is the pin up at the weekly timeframe:

Ethereum Technical Market Analysis 7th October 2019

Our main scenario remains valid and the continued fall and a new yellow price range test and the test of $155 are very likely. Probably, there Ethereum buyers will be able to reach their full potential. In the meantime, we have to follow the boring consolidation movements which train the nerves of investors. Well, let’s train together and we’ll see on Wednesday whether sellers manage to test $155 and how buyers react.

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: TradingView

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Ethereum Technical Market Analysis 16th October 2019

Probably it is over. So sad and with melancholy, we are talking about the local growth of …