There is a consolidation in the range $136-141$ over the last 2 days on Ethereum market.
Fixing below $130, sellers will lower the price to $119 and $105.
An alternative scenario is not possible until buyers are fixed above $145.
In the previous two days, the situation in Ethereum market was relatively calm. After the sharp growth of Ethereum price from $123 to $137, the consolidation which buyers have been trying to break, has formed. However, if we compare Ethereum price movement and Bitcoin one, we can see that Bitcoin buyers today were able to update the local high. While Ethereum buyers were only able to test the purple range once again, showing their weakness. So at the moment, interest in Ethereum is much lower and this coin is out of condition yet.
If we look at the situation on the hourly timeframe, we see the pattern associated with the price mark $140.34:
Pay attention that for the third time, buyers are trying to fix above this mark, but after a false breakdown, the fall immediately begins. In only one of 3 cases, buyers try to pass this mark on increased volumes. During the third unsuccessful breakthrough attempt, buyers failed to keep the local Ethereum price $136. They always controlled it during their consolidation. This is a fact of buyers weakening in this range and another signal of a likely price reversal in Ethereum market. Our main scenario – the fall to $113 with local stops $130, $123 and $119 remains valid.
On a daily timeframe, we see that buyers’ aggression from 23 March ended on 23 March:
Yesterday’s daily candle did not continue the initiative of buyers. And already today sellers “absorbed” this candle, lowering the price below $136. The best scenario for buyers right now is to keep consolidation below $137-145, giving themselves a chance to break this range. This is the reason why buyers should keep the mark $130.
According to the wave analysis on Ethereum market, we see that the mark $140.34 is a level of Fibonacci which shows that buyers managed to correct the global fall wave from 19 February by 38.2%:
If you look at the situation more locally, then correction of the fall from 19 February is over and a new wave of Ethereum price fall begins:
If our scenario is correct, then after breaking $130, the next fall targets are at $119 and $105. Let’s see on Friday whether buyers will be able to keep $130 and whether they will be able to organize a decent counterattack from that mark.
Image Courtesy: TradingView