Ethereum Price and Technical Market Analysis 22nd December 2019

• Ethereum price fall this week is 20%.

• Sellers have tested the lower trend line of the black wedge at the mark $116.

• The weekly candle closes with the prospect of a local price reversal next week.

Ethereum trading week ends with a partial regain of buyers’ positions. The weekly timeframe clearly shows the test of the black wedge lower trend line and a pin larger than the candle body. Thus, the breakdown of the critical zone $138-145 at the end of the week does not look as sure as it did at the beginning. Therefore, next week there is a high probability of a new fight for the price range $138-145. Overall, Ethereum price fall this week is 20%.

The daily timeframe shows a 4-day price stop, which is more like preparing for the attack on the purple zone:

The prospect of creating a local growth trend is still being finalized at the mark $160, where the black wedge upper trend line passes. In the process of shaping the trend, it will become clear how aggressively targeted buyers are and whether they will have enough volume to break through the global wedge.

Buyers’ margin positions actively moved within 2 days during the week. The rest of the time, buyers were quite lazy:

However, the sharp increase of marginal positions on the day of the price fall indicates confidence of buyers to continue price growth. Moreover, Ethereum price  sharply turned around immediately after the fall.

Sellers continue to reduce their marginal positions and be in a downtrend:

According to the wave analysis, the wave (c) probably completed its formation, testing the level of Fibonacci 0.618:

Thus, to break the current global trend, it is enough to fix above 0.382. It will be a great signal to start growth with the first global target $206. An alternative scenario would come into effect if buyers failed to take control of $138-145. In this case, sellers will again storm the price mark $115. If Ethereum price fixes below this mark the new horizons will open for sellers with a final target $85.

Therefore, we expect buyers to have a decent response to the breakthrough of $138-145. We will see whether our main scenario has worked out next week.

BitcoinNews.com is committed to unbiased news and upholding journalistic codes of ethics. For more information please read our Editorial Policy here.

Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Image Courtesy: TradingView

The post Ethereum Price and Technical Market Analysis 22nd December 2019 appeared first on BitcoinNews.com.

from BitcoinNews.com RSS Feed
via TOday BItcoin New