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The last two trading weeks on the Ethereum market have made investors nervous. Twice trying to lower the price below $1700 sellers almost broke the trend of buyers from March 2020. The last week’s chart shows that buyers managed to take matters into their own hands and return the ETHUSDT price to the orange channel. The price went beyond the trend channel at low volumes.
Technical Analysis of ETH and Test of $3000
This fact suggests that sellers do not have enough strength to push the price down even after the destabilization of buyers’ global trend. The victorious exit of the ETH price outside the trend channel was observed in May 2021. Then this situation provoked a sharp turn in the ETH market. To repeat this scenario, buyers need to take control of the mark $3,000. In the weekly timeframe, we see that after a powerful candle on 19 May, buyers for 3 weeks tried to impose a fight at around $3000. In fact, after this attempt, the Ethereum price did not come close to this mark.
Given that the mark of $3000 can be considered the upper limit of consolidation, the probability of testing this mark in the near future is as high as possible. For example, in the BTC market, buyers are successfully testing and trying to break the upper limit of their consolidation at around $40,500. Given the growing dominance of Bitcoin in the crypto market, other coins should wait in turn for growth. However, given the importance of Ethereum in the crypto world and the positive news in early August, the ETH price growth by at least 30% in the near future is our main scenario.
The Trend of Ethereum Dominance Remains Growing
Despite the recent increase in BTC dominance, the impact of ETH remains high:
The ETH dominance indicator stopped at an important range of 19-20%. It was after breaking this range down in 2018 that the “winter” began on the ETH market. The recent strong growth momentum to the range of 19-20% and the current consolidation below the range show considerable interest in the coin. Therefore, the mark of $3000 is the first Ethereum price stop on the way to the test of $3800-4000. To implement this scenario, it is important for buyers to keep the mark of $2100. In this case, buyers will prove to be the winners in the market, avoiding unpleasant repeated deep corrections.