Buyers tested our final target $200.
Fixing below $187, the basic test scenario of $141 will increase its chances.
By updating $200, buyers will continue to grow to $220.
The previous week of trading on Ethereum market ended with a test of $200 and a price stop in the 2% range. Over the previous week, buyers successfully closed another candle, leaving the prospect of Ethereum price growth continuation to $220. In general, last week the price increased by 10% from the opening price of the weekly candle and completely covered the previous falling candle from 9 March.
Globally, the price continues to move inside the wedge. And to destabilize buyers, sellers need to fix below $184. On the daily timeframe, we see the first signals of a likely beginning of correction. Buyers failed to update local high yesterday and for the first time in 6 days the closing price of the daily candle closed below the opening price.
The 4-hour timeframe shows that sellers need to fix below the local range $193-195 for the first test of liquidity zone $170-174:
Yesterday’s attempt to fix below that range failed, but after this sellers’ attack, the new attempt of Ethereum price growth seems rather weak.
The dominance of ETH in the crypto market for the third day is slowly falling, which is significantly noticeable in reducing volatility:
Analyzing the charts of USDT dominance, which is decreasing and BTC which increased yesterday, we conclude that local interest in this coin has decreased. In our opinion, the correction of the growth channel in Ethereum market from 12 March will begin with a synchronous decrease in both BTC and ETH dominance and an increase of USDT dominance.
According to the wave analysis on Ethereum market, the situation remains unchanged and we expect the wave (Y) to be completed:
Theoretically, at the mark $200, the wave Y could complete its formation and at that mark is equal to the wave W. However, we do not yet see confirmation of this information from sellers. Instead, buyers are actively buying ETH below $195. Therefore, we do not reject the probability of Ethereum price growing to $220.
Nevertheless, looking at the chart, as with each new attack buyers have more and more difficulties; our main scenario is the test of $141:
Its probability will increase significantly after fixing below $187. Let’s see if sellers will at least test the lower trend line of the wedge by Thursday.
Image Courtesy: TradingView