Buyers’ second attempt to fix above $216 was unsuccessful.
Sellers do not take chances to counter-attack and stop the pressure near buyer’s limit orders.
Fixing below $214, sellers have a good chance to test $192-194.
During the previous day, buyers failed to continue active growth and fix above $216 on Ethereum market. Yesterday, Ethereum price was moving in the range 3.5%. The first step in yesterday’s trading was made by buyers, trying to pass the local range $214-216. On 30 April, a breakthrough of this range prompted sellers to take actions. And for two 4-hour candles, sellers were able to lower the price below the range:
The attempt of buyers on 1 May to control the price zone $214-216 ended with a light test on small volumes. Sellers did not forget to answer and quickly lowered the price to $210. Considering the trading volume yesterday below the local range, consolidation was formed, the lower limit of which is the trend line of buyers.
As we can see on the hourly timeframe, buyers look pretty weak in this consolidation:
Sellers are in no hurry to exploit this weakness. And as chance offers counter-attacks they sharply stop their activity. So for now, everything looks like a retest of the range $214-216. As long as Ethereum price is below $216, sellers have a good chance of correction to the range $192-194.
Considering the consolidation in Ethereum market, we are trying to find a timeframe where we can see the advantage of one of the parties. Looking at the 12-hour timeframe, the situation is in favor of buyers:
As we can see, after two twelve-hour sellers ‘candles, buyers only managed to block all sellers’ efforts. Right now, sellers are trying to change the situation, but we do not see any active downward movement. It implies that during a fall, buyers are actively entering positions, slowing down the fall by their limit orders. But sellers practically do not keep the local highs.
According to the wave analysis in Ethereum market, sellers managed to correct the previous impulse by 61.8%.
At the moment, the price is below the important level of Fibonacci 0.382. To realize the new wave of growth, buyers need to fix above $212.
We continue to monitor the situation with Ethereum price and on Monday we will sum up the results of the weekly trading.Also we will see whether sellers still managed to turn the situation around and test $192-194.
Image Courtesy: TradingView