Sellers reached the first global target at the mark $232.
The nature of Ethereum price fall indicates a likely local correction to the mark $246.
The next global point of sellers is $200.
Today, on Ethereum market sellers have been able to confidently test our target, which we discussed in our previous analysis. The mark $232 has felt the aggressive hands of sellers and now it is a matter of courage and confidence of buyers. Sellers have lowered Ethereum price by 6% today. Trading volumes have been increasing for the third day. And so far nothing can stop the sellers.
Daily timeframe shows us that with weak protection of $232, sellers will be able to continue the price fall to $ 222. There in history is visible a little consolidation with liquidity.
Considering the nature of the price fall on the 4-hour timeframe, after breaking the black line sellers lowered the price without correction:
The last two candles have an increased volume, which indicates a certain fight with buyers trying to suspend the price. The appearance of candles does not show the confidence to sellers in the last 8 hours. So, the probability of correction to the mark $246 increases.
However, buyers are not only able to maintain optimism in Ethereum market, but to increase it! This week, given the steady fall of Ethereum price, buyers have drastically increased their margins by updating historical highs:
Buyers will be in dangerous situation if they fail to keep $232. Continuing a dynamic fall, a sharp growth of buyers’ marginal positions can only help the price fall even faster.
Sellers are also trying to increase their marginal positions, but they are far from buyers’ confidence:
According to the wave analysis in Ethereum market, the picture is similar to Bitcoin. Sellers corrected their previous wave of growth by 23.6% and their next global target is at $200:
If you look at the situation more locally, the current falling wave (c) is equal to the wave (a). The following likely Ethereum price stop after sellers fix below $232 also indicates to the price mark $200:
Therefore, we are following how today’s candle will close and whether buyers can arrange a correction to the mark $246.
Image Courtesy: TradingView