Last week’s candle closed at $210, forming a large pin up.
Fixing below $187, sellers will open the way to $164.
To change the initiative in the market, buyers need to fix above $215.
On the wekend, there was the fight for the local range $214-216 on Ethereum market. The winner of this fight is officially recognized sellers who successfully repelled two attacks, allowing one false breakdown in the price zone. At that, volumes were average and Ethereum price was moving in the range of 3%. The weekly candle is closed 40% body and 60% pin up, which allows to organize the growth correction from 13 March. As we can see, the new week began with a price lowering and a return to the global wedge. Specifically, sellers are now trying to break through the bottom trend line and continue to fall to $170.
At the 4 hour timeframe, we see that sellers have managed to test the local range $192-194, from which buyers started a new wave of growth to Ethereum price $226:
Buyers guard this range. The proof is the 4-hour candle, which is closed by a large pin and on increased volumes. Repelling sellers’ attack on Ethereum market, the critical point will be the range $210-215. It should show whether there are still warlike intentions of buyers and the desire to push the price up. In case of a low-volume attack, buyers should expect a breakdown of the lower wedge trend line and a test of $164. There is enough liquidity in this mark to organize at least a rebound. We also see the formation of a local falling channel, the upper limit of which passes near the range $210-215.
If you look at ETH dominance chart in the crypto market, it continues to fall, approaching 9%:
This is a local critical point which confirms the probability of a rebound upwards and a test of $210-215.
In our opinion, an update of the local high $227 from the range $192-194 is unlikely. This is a local range, for temporary price stop both up and down. According to the wave analysis on Ethereum market, the wave (Y) was formed elongated and equals 1.618 * (W):
As we can see from the levels of Fibonacci, fixing below Ethereum price $187 sellers will open the way to the level $164.
Therefore, this week we expect the start of growth correction from 13 March. On Wednesday, let’s see whether sellers managed to break $187 and test $164.
Image Courtesy: TradingView