Ethereum (ETH) Technical Analysis: Sellers Are Preparing for the $3000-$3100 Test
The previous trading week on the ETH market was incredibly successful for investors. Of course, due to the active Bitcoin dominance growth, the ETH cryptocurrency could not show all its power of the growth trend. However, unlike other coins, Ethereum showed good growth dynamics with an increase in the price by 15% per week. It should be noted that the ETH cryptocurrency is quite "heavy," as it is in second place in terms of daily trading volumes. This fact drastically reduces its volatility compared to low-liquidity coins. Though, even during the total BTC domination, ETH was able to regain its share of the crypto market and get as close as possible to historical highs. Sellers managed to stop the price near the mark of $3920.
In the weekly timeframe, we see that at the end of August, the closing of the candle below this mark provoked a local correction of the ETH market by 30%. Closing last trading week near this mark, buyers have prepared a foundation for the attack of this mark with the first target of $4780. But, to confirm this scenario, it is worth waiting for the ETH price to be fixed above the $3920 mark, at least on the daily timeframe. Doubts about such a positive scenario are raised by the trading volumes, which are systematically declining. The local high update at steadily falling volumes indicates an inert motion, which can be quite abruptly interrupted by an aggressive fall wave. In this scenario, the main buyers' support is in the range of $3000-$3100.
Technical Analysis of ETH in the Daily Timeframe
Analyzing the Ethereum price movement in the daily timeframe, we see that yesterday's attempt by sellers to launch a counterattack failed. Sellers managed to test the local range of $3500. However, to confirm the strength, buyers today need to update the local high and stay above the $3920 mark. Otherwise, a sharp buyout will be considered buyers protection, leading to a slow push below $3500 this week.
In addition, the daily timeframe clearly shows that buyers can not confidently break away from the orange trend line upwards. This trend line is a global Ethereum growth wave since March 2020. The low dynamics of ETH price growth may indicate the weakness of buyers and the total need for correction. Therefore, the loss of the local mark of $3500 can, at least for a while, force the ETH market to start consolidation in the range of $3000-$3100. This is currently considered a positive scenario for the Ethereum market.
ETHBTC Price Has a Minimal Prospect of Falling by 15%
The weekly ETHBTC chart also tells us about the possibility of local correction. On the chart, we see that at best, the ETHBTC price stopped in consolidation after a strong growth impulse on 29 March. Therefore, while the price is in this consolidation, talking about a rapid medium-term growth wave is too early. A negative scenario in the ETH market will happen if buyers are unable to maintain the range of 0.053-0.055. In this case, the ETH market may fall by about 40%, and by the end of 2021, we will see a correction.
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