Buyers kept the local range $194-196.
Fixing above $207 buyers will again be able to compete for a break of $216.
Fixing above $216 following targets for growth are $230 and $250.
Starting from 19 May, sellers felt confident in Ethereum market, gradually lowering the price to the bottom trend line of the growth channel. During this local fall wave, Ethereum price fell by 10%. The critical point for buyers, who have been building a new growth wave since 11 May, was $216. In previous analyzes, we wrote that in case of unsuccessful attempt to break this mark, buyers need to prepare for the defense of the range $194-196. As a result, we see in the daily timeframe that the price simply stopped near this mark without much attempt to break it.
In addition, trading volumes at local highs were very small, which provoked sellers to start the correction. During the price fall on Ethereum market on 20 and 21 May, trading volumes increased. The percentage of market sales also increased, reaching 58% on 20 May and 62.7% on 21 May. The fall has stopped in the range $194-196 and now buyers are trying to turn the price up. Thus, sellers have demonstrated that in this price range they have enough strength to fight for the future trend. Therefore, if we see a new wave of growth of buyers with low volumes – it will be a new signal for sellers to break the trend line and the range $194-196.
In the 4-hour timeframe, we see that the aggressive fall of Ethereum price began after breaking the local mark $206:
As we can see, this mark created problems for buyers on 14 May, and sellers were not be able to take control of it for the first time. Therefore, this mark will be the first indicator of the strength of buyers. In the event of an unsuccessful attempt to break this mark, sellers will continue the attack with a target $185. Below this target, sellers will open the way to $161. The current nature of price growth in Ethereum market does not look in favor of buyers. If the price continues to move in this format, we should expect a new attempt to fall and test of $200. In case of a successful test, buyers will continue to grow much more confidently.
The dominance of ETH in the crypto market for the third day is traded in a narrow consolidation:
Having fixed above the mark 9.08%, buyers can expect a sharp growth of this coin, as the prospect of increasing the impact of ETH ends at 10%.
According to wave analysis in Ethereum market, the wave (Y) is now continuing to form. At the moment, we can’t talk about the final target $250, as buyers have not yet fixed above $216:
Therefore, we expect confirmation that the correction of growth from 12 May is completed. And we will determine, by the nature of Ethereum price growth, what is the probable final growth target $230 or $250.
Image Courtesy: TradingView
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