Buyers confidently break $216 and are moving towards the final target $250.
A sharp response from sellers near the mark $250 may be the beginning of a price correction to $170.
Closing the weekly candle around $250, the next week of trading will be in the fight for the range $280-300.
During the previous two days, there was a positive dynamic in Ethereum market for buyers. By raising Ethereum price by 10%, buyers were able to confidently fix above the critical point $216 and continue to realize the prospect of growth to $250. An aggressive attack on the upper limit of consolidation, where we see high liquidity in horizontal volumes, allowed buyers to close the daily candle on 28 May without a pin up. The chance for correction and response on 29 May sellers missed, spending trading day in a narrow range $218-221. Buyers do not allow testing the mark $216 again and today they continue the attack, which has been going on for 4 days.
Trading volumes will remain average and so far it is enough for a confident growth of Ethereum price. Market purchases on 28 May were almost 65%, which shows the complete absence of serious sellers. During 29 May, sellers tried to impose a fight, making 50.5% of market sales. However, these efforts did not affect the result and the daily candle closed without threat for buyers.
In the 4-hour timeframe, we see that buyers are quite interested in Ethereum coin, practically not allowing any 4-hour candle to close below the opening price:
After meeting with limit orders of sellers in the range $218-221, the price growth in Ethereum market slowed down. But buyers controlled the situation, not allowing sellers to lower the price too low. Given the confident breaking candle on the 4-hour timeframe, backed by volumes, we see no barriers for growth continuation to our final target $250.
On the chart of ETH dominance, we see the movement of the indicator to the mark 10% and the upper trend line of the triangle:
As we can see, the indicator of ETH dominance in the crypto market has been moving in a black triangle since February 2020. Therefore, to break through and fix Ethereum price above $250, buyers will need a lot of volume. Otherwise, we will expect a correction with the first target $170.
In the weekly timeframe, we see that buyers have managed to update the local high, set in April:
Thus, a test of the mark $250 this week is quite possible. By closing the weekly candle without a pin, buyers will have a chance to fight with sellers at $280. Let’s see whether sellers will allow buyers to fulfill their targets so easily and on Monday we will analyze the trading situation on Ethereum market.
Image Courtesy: TradingView