Buyers continue trying to break through $190.
The local growth trend will end with fixing below $180.
Next week’s target is the test of the mark $205 with a potential growth up to $230.
The trading week in Ethereum market was quite active. Ethereum price growth for the week is 12%. After the previous passive week, buyers were able to update the local high and test the critical price zone $180-190. We are not surprised about trading volumes this week and their increase. But the breakdown of $180-190 remains in question. If we draw the price falling channel at local lows, it looks like the upper trend line of this channel is exactly the same as the current Ethereum price stop range:
This fact reinforces the importance of the range $180-190. Buyers will not be able to drastically break the downtrend without significantly increased volumes.
Buyers have been trying to pass the green price zone for 4 days now. A clear upward trend has emerged at the 4-hour timeframe:
Sellers have repeatedly attacked the red trend line and so far, buyers have been successfully protecting it. Therefore, the probability that buyers will fix above $190 is quite high. The change of forces in Ethereum market will happen after sellers fix below the mark $180.
Another interesting fact we can see at the 4-hour timeframe. Pay attention how sellers tried to organize a counterattack with a help of large volumes on 1 February. However, unlike volumes, the candle itself does not correlate with the volumes and is completely invisible. It demonstrates the absorption of sellers’ aggression by buyers with the help of limit orders. As you can see, the next attack of sellers took place on a much smaller volumes. Immediately after feeling the weakness of sellers, buyers have sharply changed the situation in their favor today:
Buyers’ marginal positions increased significantly this week, allaying our concerns about the likely decline of buyers’ mood:
Sellers confidently reduce their marginal positions for the second week:
According to the wave analysis, the growth of buyers corrected the fall wave from 24 June by 38.2% and continues to the next level of Fibonacci 50%:
Therefore, the next potential price stop in Ethereum market is around $205, with the growth continuation up to $230.
Let’s see if buyers can confidently continue Ethereum price growth next week and whether they will find enough volume to do so.
Image Courtesy: TradingView