Sellers managed to test the price zone $180-190.
The first possible target for buyers is $205.
The global correction of the growth wave since December 2019 is 50%.
Yesterday’s trading day on Ethereum market ended with consolidation and passive behavior of market participants. Ethereum price closed by 1% lower than it opened and in such a situation buyers could count on the organization of correction. However, today sellers vividly draw attention to themselves, not allowing buyers to fix above $205. Also, the hope for the organization of correction from buyers gave volumes.
During 10 March, trading volumes were halved compared to the growth on 9 March. However, this fact did not work. As we can see on the daily timeframe, sellers today managed to upgrade the local low and test $180-190 without much effort on volumes. If we look closely at this range on history, we will see that sellers have used it as a support before the test of $118. It was just before this range that one of the few corrections occurred during the crazy growth in Ethereum market to the mark $287. Given the low trading volumes and the sharp rebound of Ethereum price from the range $180-190, buyers are finding a new local bottom for correction.
At the 4 hour timeframe, we can see that the price is now near the previous local low:
All that buyers could do after a sharp fall is to organize consolidation with increased volumes. However, since 9 March, volumes have disappeared and today’s fall began without much effort from sellers.
Considering the whole situation, the miracles on the chart of buyers’ marginal positions do not end:
Buyers have been able to increase their margins today without fear of Ethereum price fall.
Sellers, despite the situation for the second day, reduce their marginal positions:
According to the wave analysis in Ethereum market, sellers managed to correct their previous growth by 50%:
The local fall wave (C) is almost the same in length as the wave (A). The exact identity of these waves will be if sellers manage to test $177.
We are waiting for a buyers’ response tomorrow. Then, we will be able to verify that buyers have enough strength to start a correction movement from the current price range.
Image Courtesy: TradingView