Buyers have not been able to fix above $206.
Looking at market purchases and sales from 22 May, buyers look weaker than sellers.
If buyers fix above $206 they will be able to compete for $216 again.
Over the last two days in Ethereum market, consolidation in the narrow range $200-206 has continued. On 24 May, buyers tried to fix Ethereum price above $206, which provoked formation of a false breakdown of this mark and the closing of the daily candle at $199.5. As for the volumes of trades, they are gradually decreasing from 21 May and the last two days are no exception.
If we analyze market purchases and sales during the consolidation period from 22 May, it is noticeable that buyers are still less aggressive. On 22 May, byuers absorbed the previous daily candle by 80%, but market purchases accounted for only 49.7%. The next day, buyers bought more confidently, but the appearance of the candle indicated the dominance of sellers above the mark $206. Sellers’ attack on 24 May was confident both in terms of the appearance of the daily candle and in terms of the percentage of market sales, which were 59.5%. Yesterday, buyers only by 1% prevailed in market purchases. These statistics show that sellers are slowly but surely reducing the trading price range on Ethereum market for a breakdown of $196 and the fall continuation.
Let’s see if buyers will be able to use this tactic to keep the next attacks of sellers and exhaust them in this range to continue their trend. However, the situation is critical for buyers, as Ethereum price is on the trend line, breaking which sellers will show a sharp price fall to $177.
In the 4-hour timeframe, we see confirmation of words about a critical point for buyers:
Sellers right now are trying to reverse the global growth trend from 13 March. However, the last update of the local low was rather sluggish. In addition, sellers allow quite deep corrections. The local critical point of sellers is still at $206, above which buyers can try to test $216 again.
The dominance of ETH in the crypto market has slowed down:
If we compare the charts of ETH and BTC dominance, we can conclude that they have a negative correlation. Therefore, for the period of probable Bitcoin growth to $9400, Ethereum activity may fall. So, let’s see on Thursday whether ETH market participants will be able to overcome the current consolidation and test the mark $177 or $216.
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