Ethereum buyers updated the local high at the price $194, creating a false breakdown.
The critical point for buyers is at the mark $174.
The growth continuation is possible not higher than $200.
Yesterday’s Bitcoin growth by 8% also prompted buyers in Ethereum market to try to continue the growing trend from 13 March. Yesterday Ethereum price raised by 6% and the daily candle looks less convincing comparing with Bitcoin candle. In total, buyers have almost reached our final target and updated the local high at the mark $194.86.
However, the daily candle closed below the previous local low. It continues to tell us about the weakness of buyers and the sharp price reversal with the global wedge breakthrough. The critical point is at $174, which is the lower limit of the liquid range $174-184. If we talk about the dominance of Ethereum among the entire crypto market, it fell by 3%:
It explains why Ethereum showed much weaker growth this time than Bitcoin.
In general, the breakthrough of the previous local high $189 in Ethereum market did not cause a panic close of sellers’ marginal positions, showing a sufficiently bearable pin:
As we see in the 4-hour timeframe, sellers do not allow a sharp Ethereum price growth. Each growth of buyers ends with a slight update of the local high.
Nevertheless, buyers are set to continue the attack. If it goes without increasing volumes, it will be a good signal for sellers to increase their margins from the first target to $161.
According to the wave analysis in Ethereum market, its formation completes the wave (Y), predicting a correction of the growth trend with a final target $141:
In addition, when comparing local growth waves, each successive wave refers to the previous one as 78.6 / 100. If this logic continues to work, then the last local wave of growth should end at $198-200.
An alternative scenario is to break this wedge up and fix above Ethereum price $200. In that case, the next target is $220. This target comes to the fore if we draw a trend line through all Ethereum lows from 18 May 2019 and build a channel through the high of 19 February, 2020, then we see that the upper trend line of the channel passes in the range $220-230:
However, there are no prerequisites for this scenario so far.
Image Courtesy: TradingView