Sellers managed to test $225 on 2 June.
The daily candle closed with the prospect of the continuation of consolidation and the test of $270-280.
Having fixed below $230, sellers will have a chance to test $206.
Yesterday in Ethereum market sellers made buyers worried by testing the mark $225. By lowering Ethereum price by 9%, sellers had every chance to continue falling to $206. However, as we can see, the daily candle was closed in half with a pin, which showed the presence of buyers in the market and their desire to keep the price. If we compare the daily candle of Ethereum with Bitcoin chart, we see that buyers of ETH behave more aggressively and keep the price better. Sellers failed to close the trading day below $230. And today buyers are exploring the area to identify the real strength of sellers, which remains.
Thus, on the daily timeframe, a sloping consolidation was formed, which so far seeks to shoot up. Trading volumes yesterday were higher than during the growth on 1 June. Despite this, buyers were able to cope with this problem and closed the trading day with dignity. Market sales on 2 June were 54%. Given the sharp price fall in Ethereum market, buyers behaved quite aggressively. To continue Ethereum price fall, sellers need at least one more such attack with the fixation of the daily candle below $230 to change the mood of buyers.
In the 4-hour timeframe, buyers try to fix above the local mark $240, above which the liquid range ends:
Successful fixation above this mark will give buyers a chance to continue to grow to the range $270-280 and an attempt to break the blue trend line of sellers. Looking at the volumes of the 4-hour timeframe, there is a high probability of continuing consolidation in the range $232-240. Consolidating in this range, the probability of growth with the first local stop $247 is very high. An alternative scenario – the continuation of the fall is possible after fixing below $230 and provided that the fall continues in the near future.
The dominance of ETH in the crypto market remains at the level of 10%:
Over the past day in Ethereum market, the indicator has not changed and is now still on the upper trend line. Therefore, increasing the impact on the crypto market and Ethereum price growth is our main scenario now. Let’s see whether buyers will be able to test the range $270-280 by Friday and how sellers will react.
Image Courtesy: TradingView