Sellers updated the local low at $175.72 and went beyond the growth channel limits.
Buyers are successfully absorbing the offer of sellers and are preparing to break $194-196.
Returning of Ethereum price to the growth channel will allow buyers to test $252.
The last two days in Ethereum market turned out to be quite aggressive and we remember the initiative of sellers. During 10-11 May, Ethereum price fell to 16%, breaking the lower trend line of the growth channel. In addition, sellers managed to fix below the local range $194-196, they set a new local low at $175.72.
If we talk about the volumes of trades during these two days, then on today they were a little less. However, the appearance of the daily candles is radically different and shows that in the narrow range $187-190, buyers were interested in this coin and actively bought. Also, the reduction of pressure from sellers is noticeable in market sales. On 10 May, market sales were 23.7% higher than market purchases, and on 11 May, they were only 2.6% higher. Such a sharp change indicates the strength of buyers, who can quite effectively stop the trend of sellers. Therefore, despite breaking the lower trend line, a repeated test of the range $194-196 is very likely to be.
In the hourly timeframe, we see that buyers are trying to build a reversal figure and completely deplete buyers at local lows for a smooth start to the growth of Ethereum price:
Now the price is moving in the local channel and it is important for buyers to keep the mark $184.7. In this case, it will be the final test of the strength of buyers. After this test buyers will try to return the price in Ethereum market to the growth channel.
The dominance of ETH in the crypto market has updated the local low and tested the lower trend line of the triangle:
It looks like Bitcoin will be uninteresting for a while and will give the way to other coins. The inaction of sellers will increase the impact of ETH on the crypto market and, accordingly, will ensure active price growth.
According to the wave analysis in Ethereum market, buyers managed to stop the fall at the level of Fibonacci 38.2%:
By keeping this level, buyers globally increased their chances of testing $220 with a likely continuation of growth to Ethereum price $252. Let’s see on Thursday whether buyers will be able to confidently fix above $184.7 and start storming the first hurdle $194-196.
Image Courtesy: TradingView