Buyers managed to test the range $174-184.
The maximum target for this trend is $188.
We expect to see the mark $140 again.
During the previous two days of trading in Ethereum market, buyers were able to drastically change the situation to their advantage. Since 6 April, Ethereum price has risen by more than 20%. The success of buyers began after the breakthrough of the local triangle, which formed in the critical range $137-145. As a result of the breakthrough of the triangle, buyers quickly reached our next target – $174-184.
At the moment, buyers stopped in front of this range because they were already greeted by sellers at the entrance. Making a slight correction to the mark $164, sellers retreated and buyers are again ready to storm the price zone. As we can see on the 4-hour timeframe, the sharp growth is supported by increased volumes.
In addition, sellers who aggressively tried to organize a counterattack also sold on increased volumes. However, all of this offer was gladly absorbed by buyers without significantly reducing the price in Ethereum market.
Looking at the two previous daily candles, the probability of the growth continuation in condition of fixing in the range $174-$ 184 is quite high:
As you can see, on 6 April, buyers pretty confidently closed the daily candle. And already on 7 April, sellers closed the daily candle with almost the same volumes without hint on a counterattack. Therefore, in the coming days, it is likely that consolidation will continue under the range $174-184 with the target to break it.
The market participants’ marginal positions did not change much over the past two days:
Sellers close their positions at local highs, regardless of whether Ethereum price is falling or rising at the moment. Buyers have suspended their activity to increase marginal positions.
According to the wave analysis in Ethereum market, the situation is not much changed. Wave (Y) = 0.782 * (W):
Wave (X) corrected the wave (W) by 50%. That’s why, continuing to grow to the next Fibonacci level $188 is quite real. However, in our opinion, this is the final point of growth under this wave model. So, we will continue to expect correction to Ethereum price $140. Let’s see on Friday, the successes of buyers during the attack of $174-184 and whether the activity of sellers will increase.
Image Courtesy: TradingView