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ETH Technical Analysis: Price Ready to Fly After the Recent Correction

Ethereum

cryptoknowmics.com 21 December 2021 12:45, UTC
  
Reading time: ~3 m

How long does it take a person to believe in himself and understand that he is strong and can change a lot? For some, one difficult situation is enough, and for some, a lifetime. If you analyze the ETH market, buyers are already proving their power and strength for the second month, keeping the mark of $3900. Starting with the weekly candle of 15 November, sellers are constantly trying to take control of this mark. However, each weekly candle closes higher.

https://www.tradingview.com/x/jA9anHVX/

If we compare the Ethereum movement with other cryptocurrencies, we can see that rarely any cryptocurrency can boast of such a force. If we take FIL as an example, we see that the current fall wave has updated the May lows. While the ETH price did not even come close to the lows of May 2021. This fact suggests that during the new growth wave, the ETH market should show good results and fully satisfy its investors with profits. We think that the ETH market will be able to start a wave of growth even if the BTC market is stuck in the consolidation range of $42,000-$58,000.

If we analyze the trading volumes in the ETH market, we can see that from May 2021 they are constantly decreasing. Growth in reduced volumes indicates a decline in the strength of buyers. But, this information still contradicts the above facts. How is this possible? The fact is that until buyers are confidently fixed above the previous historical high, other investors are not ready to contribute capital to the ETH market. Therefore, at the first local impulses of the ETH market, we expect an increase in volume and excitement around this cryptocurrency.

Technical Analysis of ETH in the Daily Timeframe

https://www.tradingview.com/x/ANp3fHDm/

Nevertheless, analyzing the price movement on the daily timeframe, one can notice an ambiguous situation. On the one hand, after a strong fall impulse, we see a weak growth wave from 14 December. However, if you look closely at how the daily candles closed during this time, you can conclude that the rebound in the ETH price has not even begun. And the price movement on 14 December was a consolidation of buyers' positions for a new local growth impulse. The first local target of buyers is $4160. If buyers manage to take control of this mark, we expect to continue to increase the ETH price to $4700. The local critical point where buyers become more active is in the range of $3700-$3850. If buyers are unable to keep this range, we will expect a new ETH fall wave with a final target of $3500.

ETHBTC Price Is Going Through Bad Times in Consolidation

https://www.tradingview.com/x/rPm7LVWd/

So, the key to the success of the ETH market is the chart of the ETHBTC pair. In the weekly timeframe, we see that buyers have managed to break the global price consolidation up. Thus, now the ETHBTC price has stopped between the two levels of Fibonacci, where consolidation has taken place. Given the nature of the ETH price increase and the price response to the indoor market correction, we expect ETH growth to continue after the consolidation is completed.


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