Buyers tested the critical mark $226.
Ethereum dominance in the crypto market falls.
The main scenario is the test $187.
In the past two days, Ethereum buyers have gone beyond $200 and updated a local high at the mark $226. By raising Ethereum price by almost 16%, buyers have succeeded to exit from the wedge and test the global trend line of the falling channel. During two days the trading volumes are higher than the previous ones, starting from 21 April. After a rather unsuccessful two attempts on 27 and 28 April to test the mark $187, buyers felt weak. Then they broke the psychological level $200, under which the price was consolidated for a week. Closing the daily candle on 29 April with a confident breakthrough of the red wedge trend line, buyers continued their growth today. But they met with significant resistance.
If we look at horizontal volumes on hourly frame, we see that the first problems for buyers arose at $215, where sellers managed to stop buyers for 8 hours:
As a result, local liquidity has formed in the range, which sellers still control. In case of unsuccessful attempt of buyers to fix above $215, sellers will test $190-194. In such an incident, an absorbing formation may form on the candle, which will start a new wave of fall in Ethereum market. The critical point of this scenario is still $187. Fixing below Ethereum price $187, sellers will open the way to $164.
If we talk about the chart of Ethereum dominance relatively to the crypto market, the figure ranges from 7% to 10%:
As we can see, now there is a tendency for a decline in dominance which entails a decrease of Ethereum price.
Given that buyers have reached global critical points on this coin, the probability of at least correction is quite high. Alternative scenario of the growth continuation is possible if buyers close the daily candle above $230.
According to the wave analysis, the wave (Y) has completed its formation in Ethereum market. The wave (Y) at the mark $230 equals 1.618 * (W):
As long as the price below $230 is our main scenario, we expect Ethereum price fall at least to $164. However, the alternative scenario of the growth to $290, we will consider after confident price fixing above $230 at least on the daily timeframe.
Today also the monthly candle is closing where the global consolidation is:
Therefore, without additional volume efforts, the probability of continued consolidation with a change in local trend is very likely.
Let’s see how the day closes and on Saturday we will analyze the prospects for this coin.
Image Courtesy: TradingView