After a sharp fall of Ethereum price from the mark $180, buyers were finally able to get underfoot and organize a stop. In a few days, buyers and sellers sort out relationships in the narrow range $135-140 we have mentioned in our previous analyses. In this price zone was our final falling target and today we will try to analyze whether it is the time to change the trend and whether there are signals for it.
If we analyze the volumes, we can conclude that during the storm of the range $135-140, market participants have a noticeable interest. The daily candle from 25 November closed in favor of buyers, giving hope and a chance for a reversing movement. Buyers are now trying to make sure that sellers force has significantly declined.
It is noticeable in the consolidation at the 4-hour timeframe:
Notice how difficult for sellers it gets every successive attempt to lower the price in consolidation. In addition, buyers do not allow them to close 4-hour candles without pins down. The situation is similar to fixing the price before the growth continuation. However, prospects for buyers are not visible above Ethereum price $160. To predict global growth, buyers need to return this price mark to their control.
If we analyze the mood, then in the chart of marginal positions of buyers, we see the exit of the indicator beyond the wedge:
Buyers tried to increase their positions, but it only ended in a false breakdown. The probability of continuation of closing positions is quite high.
However, sellers do not feel like kings in this situation and also confidently close their marginal positions:
According to the wave analysis, sellers were able to form a fall wave (c) such that it was equal to the wave (a):
According to our estimates, it should be the last wave of the fall, after which the price growth should continue. The only nuance is that we are not sure that this wave has completed its formation. Let’s look during two days how the current consolidation ends and we will be waiting for new Ethereum market signals for a global price reversal. See you on Friday!
Image Courtesy: TradingView