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ETH Technical Analysis: Will the Price Grow to $7000 Without Correction?

source-logo  cryptoknowmics.com 08 November 2021 13:55, UTC

The mystery of the ETH price movement in the weekly timeframe continues to fascinate market investors. Starting in September 2021, buyers are slowly raising the Ethereum price by an average of 10% per week. This growth occurs at low volumes and near historical highs. The ETH price can not confidently break away from the lower trend line of the orange growth channel. In this channel, the ETH market has been moving since 9 March 2020. On the one hand, this nature of growth calls into question the strength of buyers for a new rapid price growth impulse. However, for now, do not expect the fall below the range of $3800-$4000. There are many medium-term investors in this range who have not entered the ETH market, as there have been no price corrections since the end of September.

https://www.tradingview.com/x/EiCd60Yz/

However, the ETH price fall to the range of $3800-$4000 will be a joy for unpurchased investors, and we will be able to see this by the pins on the daily candles. However, it should be understood that if buyers can confidently fix above the $4700 mark, then such a bonus as a test of the strength of the $3800-$4000 range may not be. In this case, the ETH price growth accelerate to $7000 and will test the middle line of the global growth channel.

Technical Analysis Of ETH On The Daily Timeframe

https://www.tradingview.com/x/e4hN248R/

Analyzing the ETH price chart on the daily timeframe, you can see a game called "low volumes." Please note that from 1 to 3 November, daily candles grew at smaller volumes than 28-29 October. Then a small correction of the ETH price, which lasted from 4 to 6 November, took place at even smaller volumes. And the current new attempt to grow on 7 November began even weaker. The growth impulse after breaking the range of $3800-$4000 is moving within the black channel and now the price has reached the upper trend line. Given the low interest of buyers to buy now and the growing BTC dominance, the probability of a price correction to $3800-$4000 this week is quite high.

The ETHBTC Price Has a Local Perspective to Fall

https://www.tradingview.com/x/hutYjg2w/

The weekly ETHBTC chart also speaks about the probability of a correction. The price continues to move in consolidation after a strong impulse and the last three weeks have been effective for buyers. However, each subsequent weekly candle was weaker than the previous one both in terms of growth and trading volumes. Thus, despite the maximum positive in the cryptocurrency market, you should be prepared for sharp corrections. In such short moments of sale, it is possible to invest perfectly at the most favorable prices.

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