The Ethereum weekly candle closed at the price of $188.25, but buyers were able to test $203.6. 50% of a week’s candle is the body of a candle and the other 50% is a pin. It suggests that buyers have an initiative, but sellers are trying to hold back the price. The main volume of trading this week was fixed on the weekend. What were buyers able to reach this week? First of all, at the beginning of the week, buyers broke the blue trend line of the triangle, in which the price was traded from December 2018:
After that, the sellers were given a chance to return the price under the trend line and start their attack from the price zone test of $150-160. Throughout the week, sellers did not use their chance and could only test the trend line of the triangle, which is now controlled by buyers. After sellers demonstrated the weakness, buyers updated their new local highs. Did the situation change dramatically after the price went out of the triangle?
If we draw a black line on the local highs from 24 February, then we see that the price went from one consolidation to another and the price range continued to narrow. This type of triangles (wedges) more often break down, but the main critical point of this coin remains in the price zone of $150-160 and now it is controlled by buyers. Even if sellers manage to break the wedge down for us will be the priority, for decision-making, the price zone of $150-160.
Unlike Bitcoin, the marginal positions of buyers did not start to increase confidently:
Sellers closed their positions throughout the week. Everything began after the breakthrough of the trend line of the triangle on 6 April:
If we analyze Ethereum by wave analysis, the wedge we wrote above is a wave of growth that began from 8 February. Inside the wedge, we see a 5-wave structure. Wave 2 and wave 4 correct wave 1 and wave 3 by 61.8% respectively. This is a rather deep correction, which also emphasizes that the trend is weak:
If the growth from December 2018 to be considered as a correction, then the wave C = A at the moment and theoretically, buyers have a maximum growth prospect to $238:
On a weekly timeframe, we see that buyers during the month were able to keep the price zone of $150-160 and are now ready to continue to grow. If sellers continue to behave identically, then the price zone test of $238-250 is a matter of time:
Despite the buyer initiative at the moment, we notice a lot of signals of their weakness. Therefore, to confirm their intentions, buyers should endure a full attack of sellers and keep $150-160 during the breaking the wedge down. In this case, the situation will be clearer. We wish you a profitable week and cold mind!
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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