The trading week on the ETH market ended with a false breakout of the historical high. For the third week in a row, buyers are raising the Ethereum price, but it all looks not quite sure. The ETH price will creep along the bottom trend line of the global growth channel. Given that the BTC dominance has been steadily declining for the second week, the sluggish growth of the second largest cryptocurrency is alarming. Also alarming are the weekly trading volumes, which are lower during the growth wave of 27 September than during the growth of 19 July.
These unpleasant facts increase the probability of a correction of the ETH market with a target of $3000. To delete this scenario from the list of potential buyers need to keep the mark of $3950. Since the range of this mark was broken by buyers with a weekly candle from 18 October at low volumes, the strength of buyers in this range is not yet known. And the range is really iconic because buyers could not take control of it for six months. Successful maintenance of the $3950 mark range will indicate at least depletion of sellers. Therefore, in the case of a slow price fall to $3950 and the beginning of a slight consolidation near this mark will be a good signal to buy Ethereum for the medium term.
Technical Analysis of ETH in the Daily Timeframe
Analyzing the price movement on the daily timeframe, we see that buyers can easily keep the price in the local growth trend. Although the ETH price is rising without sharp movements, we also do not feel strong blows from sellers. The daily timeframe shows that local correction is difficult for sellers. Closing today’s daily candle above the $4300 mark will mean the completion of the local correction and the beginning of a new growth wave with the first target of $4730. Otherwise, the current trading week will be dedicated to testing the strength of the $3950 range.
The ETHBTC Price Continues to be in Consolidation
The ETHBTC chart tells us about the probability of implementing the second scenario and the $3950 test. As we can see in the weekly timeframe, the new trading week in the ETH market began with the price reduction. The ETHBTC market continues to be in a consolidation triangle. The probability of the ETH price drop by 7-10% is highly probable. However, it should be understood that the new local growth wave on 18 October has not yet ended. Therefore, we perceive the current signals of lower prices as local and the main scenario for continued growth remains in force.
