This time, unavailable for buyers was the price zone $198-203. The attack, which lasted for 3 days, failed to bring the desired result to Ethereum buyers. And it immediately stopped after the test of the price mark $195. This mark was supposed to bring the first problems for buyers and we wrote about it in the previous analysis.
However, sellers used this chance aggressively enough and are now trying to break $180. On the hourly timeframe, we can see the test of this price mark and we can say that there was no special fight for it. The fact is that buyers lost their strength before the test of this mark and further the price moved by inertia, because buyers were in the minority:
Thus, after three not so confident green candles on low volumes, a candle of sellers with a trade range 4% is formed. This candle is also not very different in term of volumes. It does not signal us that sellers have decided to continue their fall at least to the lower limit of consolidation, which is in the mark $155. On the contrary, if you pay attention to the black trend line, on the 4-hour timeframe, you will find that during the test of this trend line, we do not notice aggression and desire of sellers to continue falling:
It seems that Ethereum sellers are not yet ready to start the trend. Buyers can consider this situation as a chance to still test the price zone $198-203.
We want to remind that although buyers managed to move beyond the black wedge, this price zone is much more important. Only after fixing above it the global continuation of growth can be seriously considered.
At the same time, Ethereum buyers have a great mood, which shows the chart of their marginal positions. And it only exacerbates the situation:
The price fall can trigger a sharp closing of marginal positions. Then, buyers will have great prospects to reduce their positions even more and worsen their situation.
As for sellers, their business is bad now, unlike buyers. Being at historical lows, sellers cannot confidently determine their mood and behave passively:
According to the wave analysis, buyers tested the local target $195, after which the price jumped sharply:
During repeated attempt to break $195, the next Fibonacci level will be at $200. Currently, buyers force is not enough for a breakdown of $198-203. Probably, in the next 2 weeks will be the continuation of consolidation and retest of $155. We have to wait for market participants to react to the test of $200. See you on Sunday on a weekly Ethereum analysis.
Image Courtesy: TradingView