Raising Ethereum price by 7% yesterday, buyers managed to test the local critical point $232.
Due to the weakness of buyers, continuation of the fall to $200 may be from the mark $232.
The ideal scenario for buyers is to continue growing to $244.
Buyers were able to raise Ethereum price by almost 7% in market yesterday. The stop of the local trend of buyers was during the test of the price mark $232. This growth looked quite positive and gave hope for continued growth of Ethereum price to the level $244.
However, if you look at the volumes through which this growth and the local low occurred, the situation looks disappointing. Sellers broke the mark $232 on 26 February and are confidently keeping it for the past 6 days. However, buyers do not allow Ethereum price to continue to fall below $210. Thus, a consolidation was formed in the market in the range $211-232.
If we look at the 4-hour timeframe, we see that the test of $232 in Ethereum market is constantly on low volumes, reducing the probability of breaking and increasing buyers’ weakness:
At the moment, everything looks like sellers are draining the last power of buyers to continue the sharp fall without stop. In this scenario, the next seller’s target is $200.
However, the magic mood of buyers remains the same. After yesterday’s growth, buyers have increased their margins again and are preparing to update the historical high:
Sellers are aggressively reducing their marginal positions for two days, although the situation seems to be in their favor:
According to the wave analysis in Ethereum market sellers are fixed at the level of Fibonacci 0.236 with a probable continuation of the fall to 0.382:
In our opinion, the global growth correction since December 2019 has not over yet. To determine the clear target of Ethereum price fall, we need to see which way the current consolidation is heading. Therefore, our main scenario remains the same. The only question is whether buyers will be able to get to the mark $244 or $232 is their maximum at the moment.
Image Courtesy: TradingView