Sellers failed to retest the range $192-194.
After breaking $214-216, buyers will continue to grow to $226.
The fall to $164 is possible only after fixing below $192-194.
During the previous two days in Ethereum market, buyers managed to seize the initiative and start an attack of the local mark $216. On 6 March, sellers continued their local trend and tried to re-test Ethereum price range $192-194. After sellers fixed below, they have prospects to continue falling to the mark $164. However, on 6 March, sellers did not aggressively lower the price and increase volumes.
As you can see in the daily timeframe after the test of the range $192-194 on 4 April, each subsequent trading day took place on a smaller volume. As a result, with the help of the daily candle on 7 April, buyers “swallowed” three previous candles of sellers. During the day, buyers managed to raise the price by 6%, while market purchases prevailed over market sales by 13.5%. If we compare the active purchases with BTC, we see less pronounced interest from buyers. It is reflected in the percentage Ethereum price growth.
Ethereum market participants continue to trade this coin within the wedge trend lines, in which the price is from March 2020. As buyers managed to return the price above the lower trend line on 7 April and keep the trend, increases the probability of updating the local high $227.
At the 4-hour timeframe, we see that buyers have reversed the local trend of sellers, breaking the black trend line:
Now Ethereum price is consolidating under the range $214-216 and most likely buyers will be able to break through this price zone. In terms of horizontal volumes, we see that the bulk has gathered around the mark $209. And buyers should keep this mark under control. Below it again will be the risk of $192-194 test.
ETH’s dominance in the crypto market continues to decline, but over the past two days we have seen a slowdown in the falling trend:
Given the strong trend in Bitcoin market, there is a high probability of the transition of the active phase of price growth to consolidation. In this case, we expect the beginning of the active phase of Ethereum growth with the first global target $245.
According to the wave analysis on Ethereum market, the wave model is still relevant. And the probability of correction of the growth trend from 13 March with the target $164 is still in force. However, by updating the high $226, we will look for another waveform scenario to define global targets.
Let’s see if sellers will be able to change the situation over the weekend and how the weekly candle will close.
Image Courtesy: TradingView