The new Ethereum trading week began with buyers attempt to test the critical range $180-190.
Buyers respond positively to the price growth and increase their marginal positions.
To stop the attack of buyers, sellers have to lower the price below $166.
Last trading week in Ethereum market was not very lively. After perfectly closed weekly candle at around $166.84, last week buyers decided not to update the high and rest. It is noticeable both by the size of the candle and by volume. Buyers stop their aggression before the previous local high and move Ethereum price into consolidation mode.
In fact, since 15 January, buyers and sellers are sorting out their relationship in the narrow range $160-170, above which is the critical range $180-190. Given that in the range $160-170, we do not see aggressiveness of sellers, the continuation of growth in Ethereum market and the test of $180-190 are likely.
If you look more closely on Ethereum price movement last week, it becomes clear that throughout the week, sellers have tried to lower the price below $160. And with a help of one daily candle on 26 January, buyers have been able to completely deny seller’s work throughout the week.
This is another fact that sellers do not yet have a solid foothold for breaking the local trend.
At the 4-hour timeframe, we see that buyers have been able to capture the trendline of sellers, which has kept the price in Ethereum market since 18 January:
Today’s growth will end when sellers can lower Ethereum price below the mark $166.
Marginal positions of Ethereum buyers are much more confident than in the case of Bitcoin ones:
Buyers were able to restore marginal position and re-enter the black wedge.
Sellers have been actively closing their margins since yesterday, not paying attention to the approaching to the critical range $180-190:
According to the wave analysis, the wave of growth, which began from 19 December, continues. Sellers managed to correct it by almost 38.2%. The first critical point is at $180:
In case Ethereum price are fixed above $194, continuation of growth to $220 is inevitable.
Let’s see if buyers can break the consolidation range $160-170 and get closer to the main critical point. Meet you on Wednesday!
Image Courtesy: TradingView
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