Buyers corrected the previous wave of fall by 50%, testing the mark $133.
Successful daily candle closure on 28 March gives the chance of a new attempt of breakdown of $137-145.
Fixing below $128, sellers will continue to push the price down to $119.
The trading day on Ethereum market was more successful and volatile than on Bitcoin market yesterday. First of all, buyers were able to make a much deeper correction of Ethereum price, testing the previous consolidation range $133-140. In addition, buyers have touched a red trend line which sellers have successfully broken. At the moment, buyers are trying to form a new local trend which is more like a correction. Sellers could not reach our first global target $119 after two failed attempts to fix below $125. The initiative has temporarily switched to buyers. Now, they are trying to fix over the liquid range $128-130.
If you look more closely at horizontal volumes on the hourly timeframe, it can be noticed that especially large volumes are in the mark $130-131. And at the moment the price is below these marks:
Therefore, in order to succeed, buyers need to fix above $130 in Ethereum market. Then the probability of repeated attempt to break the main range $137-145 will be very high.
Yesterday’s daily candle closed at Ethereum price $131.23, forming a pin down after the break of the trend line:
This situation shows us that there are enough buyers in this price zone to stop the fall and the fight for the growing trend may continue. Given the importance of the current price range, not much liquidity has gathered on both small and large timeframes, a rebound to $137-145 is probable. However, the fall continuation after the test of this zone remains our main scenario.
According to the wave analysis, yesterday’s price rebound corrected the previous fall by 50%:
If buyers do not keep $128, sellers will start a new wave of Ethereum price fall with a probable stop at $119. Although, if buyers manage to close the daily candle as well as yesterday, then sellers will be tested for strength with a target $113-137.
We will meet on Tuesday and analyze the end of the trading week in Ethereum market and forecast the price movement for the next week.
Image Courtesy: TradingView