Great ambitions and favorable conditions on the market gave buyers the opportunity to test a price zone of USD 365. In the previous analysis, we wrote that the first target, which we expect is USD 320, but within a week, buyers quickly coped with this mark and were able to test globally important level for this coin – USD 360. This level was an important point in summer 2017 when buyers rushed at a lightning speed but stopped in the 3rd month in consolidation at a price of USD 360:
Also, from this level, the price was reflected in April 2018, when sellers with a lightning speed lowered the price from USD 1400.
If we consider in detail the day candle on 26 June, then we see that after buyers tested USD 365, sellers abruptly lowered the price below, forming a large pin on increased volumes. With this candle, buyers broke the black trend line, which was drawn at local highs from 16 May, but already on the next day, the sellers returned the price under the trend line, at the same time testing the price zone of USD 260-280:
Marginal positions of buyers, after breaking the upper limit of consolidation began to decrease:
Sellers did not react actively to the fall of ETH and decided not to increase their positions. We remind you that now marginal positions of sellers are on historical lows:
In the wave analysis, we see that buyers tried to fix over the price of USD 320, in which the wave (C) exceeds the wave (A) by 1.618 times:
If buyers are able to fix above the price of USD 320, then we will see growth from December 2018 not as a correction, but as the beginning of a new global wave of growth. At the moment, the critical point for buyers lies in the price zone USD 190-200. Approximately in this price zone, the main trend line of half a year’s growth passes. However, to begin with, sellers need to break through the price zone of USD 260-280, which buyers so earnestly won over the whole month.
The candle, which is formed on a weekly timeframe, shows us the equality of forces at the moment, so it will be especially interesting to watch the price movement next week. Also, the month candle will close tomorrow, and it is seen that the price slows down and the monthly volumes decrease a little:
Proceeding from this, the most probable forecast for July is consolidation in the wide range of USD 260-360. However, how the month candle will close and whether it will change our main scenario we will talk next week! Have profitable deals!
About the Author: Peter Oleshchuk is a trader and technical analyst. He has spent two years studying and analyzing the crypto market.
Charts Courtesy: TradingView