Major liquidity in Ethereum market is in the range $155-161.
By breaking the triangle down, sellers will continue to fall to $141.
An alternative scenario is a breakdown of $161 and a test of $174-184.
The last days of trading in Ethereum market are in the consolidation corridor $155-161 with not often false breakdowns on both sides. Looking at horizontal volumes, this range is considered to be the second if we talk about liquidity, which explains a stop of Ethereum price. Also at the moment there is a fight for the bottom trend line of buyers. Breaking through it sellers will continue to fall to $141. On 12 and 13 April, market participants tried to break $155-161. But the lack of enough accumulated volumes in this consolidation made it impossible to continue the vector movement.
Thus, two large pins on both sides were formed on the daytime frame, indicating new limits of consolidation:
Ethereum price yesterday and today is no longer beyond the range $155-161. It suggests that this consolidation is moving into a triangle:
The hourly timeframe shows that the critical point for sellers is $159, where the trend line passes. And there is only enough space for trading in the triangle until tomorrow inclusive. Given that the triangle formed after a sharp falling impulse, the probability of the price exit down from the triangle is more likely.
Moreover, the price in Ethereum market is now in a local falling trend. Therefore, we leave the main scenario in place and expect a test of $141. An alternative scenario is a breakdown of $161 and a repeated test of $174-184, from where we would still expect the price fall to $119.
It is also interesting to look at the marginal positions of market participants:
As you can see, buyers are in a good mood. However, looking at sellers’ marginal positions, we see that on 10 April, during Ethereum price fall, sellers aggressively increased their margins. And most of sellers opened their positions in the range of $155-161. Therefore, breaking the triangle up buyers will touch sellers’ stop orders and thus help themselves to grow to $174-184.
According to the wave analysis in Ethereum market, the situation remains unchanged:
For now, we keep the optimistic scenario for buyers, it all depends on how deeply the wave (B) corrects the wave (A). Let’s see on Friday what sellers have been able to achieve in their local trend and whether buyers will be able to keep Ethereum price $155.
Image Courtesy: TradingView