$100… a good round number that sellers failed to go through even with the second attempt. In the previous analysis, we wrote that $100 was a critical point for this coin and because of the lack of desire of buyers to buy ETH there is the probability of the fall continuation to $90-93. Nevertheless, sellers did not have the strength and the desire to reduce the price. If you compare the aggression with which sellers pushed the price down from 9 January, you can see that the main volumes of sellers were absorbed by buyers in the price zone of $115-120:

Further, after breaking through this zone, sellers lost interest in continuing price reductions and after a small consolidation, buyers began their attack. At the moment, we see only one candle with increased volume and this is not a strong signal about the future price increase. It is important that buyers can stay in the price zone of $115-120. Only in this case, when everyone will see that at seller attempts of trying to continue the fall, buyers control the situation and we can expect a further increase in prices. At the moment, the price is still in the falling channel, which was held from 7 May 2018:

Also, the chart clearly shows that the range of $100-120 contains the largest volumes of market participants. Therefore, for global growth, buyers need to keep firmly above this price range on the big timeframe.

As for the mood of buyers, at this moment we do not see the confidence and the great desire to buy:

Margin positions of buyers are in consolidation.

Looking at the marginal positions of sellers, we can conclude that local growth which began two days ago was due to a sharp closure of sellers’ positions:

If you build the Fibonacci levels at the low from 7 December and at the high from 5 January, we can conclude that sellers were able to adjust growth from 17 December by 78.6%.

If we analyze the wave Y (the last wave of correction that began from 5 January), then we see that the wave c = 0.618 * a:

The sellers twice tried to go through this level and after the failure began to close their positions.

Regarding the critical points for this coin, buyers need to keep a price of $110 and fix it above $130-135. In this case, we will be able to assert that the 8-month fall trend has finally ended and the first target is $186, and the potential target is $240. However, we are curious to see what will be the answer of sellers to the prospects for such a price.

On a weekly timeframe, we see that although the present weekly candle completely absorbs the two previous red candles, all this happens on a small volume:

That’s why the next week promises to be interesting. Therefore, we expect the confirmation of the strength of buyers at critical points in order to more confidently state the targets and price movements in our next forecast.


Follow BitcoinNews.com on Twitter: @bitcoinnewscom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

About the Author: Peter Oleshchuk is a trader and technical analyst.
He has spent two years studying and analyzing the crypto market.
Image Courtesy: Bitcoin News
Comments are closed.

Check Also

Ethereum Price and Technical Market Analysis June 7th, 2020

Ethereum market trading week passed in the consolidation range $230-246. Sellers do not ha…