Well… the weekly candle closed without any special tips and signals about the upcoming possible price movement.
The trading range ETH was 13%. Buyers have been able to keep the price zone of $155-160 for the second week. We think that this week should show the true intentions of market participants. Consolidation in the form of a triangle which started in December 2018 comes to an end. If we analyze the daily timeframe, then we see that it begins to form a new channel – the fall channel (from 8 April).
The bottom line of this channel is near the price zone of $155-160. The top trend line is in the range of $176-177. So, while the price is moving no higher than $176-177, we believe that the initiative is on the side of sellers. However, this initiative is rather weak. If you analyze the volumes on which the fall is, then they are even slightly smaller than the volumes at the previous growth of $160:
At a 4-hour timeframe, we see that sellers stopped over the local price zone of $165-168, in which in its turn was a stop for buyers before continuing growth to $179. However, at the moment, the volume during the present local consolidation is higher. Buyers are trying to keep the price and so far it is possible for them:
If we talk about the mood of buyers, then their marginal positions are closing for several days, but in quite a passive manner:
Seller marginal positions are also passively decreasing and are in the local growth channel, which is more like a correction:
In wave analysis, we see that since December 2018, 5 correction waves (a, b, c, d, e) have been formed in the triangle. Buyers corrected the previous fall by 61.8%:
If buyers cannot keep $155-160, then we expect the first stop of the sellers at the price of $123:
We will consider the alternative scenario of continuation of growth after which buyers should break through $177. We think that before global growth, sellers should test buyers for strength, and buyers should show that they are ready to keep the price. Therefore, after buyer attempt to grow from December 2018, at least we expect a correction, after which we will analyze the future potential of the market. We wish you a successful and positive week. Keep your deposits!
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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