Sellers have broken the local range $192-194 and are trying to fix below it.
The next target of sellers is $164.
At the moment, Ethereum price is on the lower trend line of the wave (Y).
During the last two days of trading on Ethereum market, sellers had a local initiative. During 9 May, Ethereum price decreased by 1%. The volumes of trades also decreased compared to the previous candle. Weak pressure from sellers side did not allow them to test the local range $192-194 on Saturday. However, today, within one hour candle, sellers were able to break through this price zone, updating the local low at $179.45.
The volume of trades for today’s unfinished trading day is very high. Last time, after such a volume, the market stopped in consolidation for a week. Though, this trading situation was above the wedge trend line. Now sellers have managed to confidently exit from the wedge limits, where the price were moving from 13 March and continue the correction to the mark $164.
Updating the local low allows us to build a falling channel which shows a critical point for a new trend in the range $194-196:
As we can see in the 4-hour timeframe, this range restrains buyers before retest of $210 and is currently the mainstay of sellers. By keeping this range, sellers will be finally dominating on the Ethereum market and the price fall will accelerate.
ETH’s dominance in the crypto market has declined significantly today:
As we can see on the chart of dominance, within 5 days the indicator grew and having met a mark 9% the indicator sharply fell. The prospect of falling ETH dominance is high and the final probable stop is at 8.5%.
At the moment, USDT dominance on the crypto market is growing, which confirms the probable beginning of the correction.
According to the wave analysis of Ethereum price, sellers managed to correct the growth wave (Y) by 38.2%:
At the local lows of the wave (Y), we conducted a growth channel, which sellers are now trying to break. It is the last hope of buyers for a new attempt to fix above $210-216 in order to update the local high and continue the trend.
Given that how the weekly candle looks like at the moment, the probability of the correction continuation on Ethereum market is quite high:
Let’s see if sellers will be able to keep the initiative in the market. On Tuesday we will analyze the week of trading on the market and its most probable scenario of Ethereum price movement.
Image Courtesy: TradingView