During 13-14 March, sellers managed to lower Ethereum price, testing $120.
Fixing above $130, buyers will continue to grow to the range $137-145.
If buyers can’t cope with the mark $130, they will be waiting for the mark $110.
Yesterday’s trading day on Ethereum market started at $135 and ended at the price $123. The overall fall of Ethereum price during the day was about 10%. The fall was in a passive style without large volumes, which can be seen both on a daily timeframe and at the 4-hour timeframe. Sellers failed to lower the price to $110, as we expected and wrote in our previous analysis. After an unsuccessful breakthrough of the range $137-145, sellers started a new attack without increased volumes.
Having stopped at the price $120, buyers have taken the initiative and will try to fix above the local price level $130. Then, from this range they again will try to attack the range $137-145. Therefore, if sellers fail to fix above $130, they will continue their trend, lowering Ethereum price to the level $110.
Comparing the volatility of Bitcoin with Ethereum price, they are almost identical. As yesterday’s price fall in two cases is 10%. Usually Ethereum is more volatile, but now all attention is concentrated on Bitcoin.
Looking at the weekly timeframe, we see that the weekly candle consists of half a pin:
By closing the candle in Ethereum market above $145, buyers will show their interest and presence in the market. However, even in this case, we think that another wave of fall should be for a real test of forces in the market. It is not necessary that during this review, sellers will update or even approach the local low. However, it will become clear what the real situation is without panic and what to expect in the medium term.
For this bloody week, margins of buyers have aggressively updated the historical high:
However, we do not feel the aggression of buyers in the market so far.
The marginal positions of sellers this week were very contrasting:
Initially, sellers increased their positions and then recorded profits at local lows.
According to the wave analysis on Ethereum market, the price is now between two levels of Fibonacci which have organized consolidation for it:
Therefore, we expect Ethereum price exit from this consolidation. On Tuesday we will analyze how the situation has changed.
Image Courtesy: TradingView