Ethereum Price and Technical Market Analysis January 23rd, 2020

• The loss of buyer strength at local highs increases the probability of a local reversal and the test of $138-145.

• Buyers’ marginal positions are steadily decreasing and have a strong prospect of continuation to decline.

• Correction of the fall wave from 19 January by 38.2% emphasizes the weakness of buyers and increases the probability of a sharp fall to $138-145.

The activity of Ethereum market participants continues to decline every day. If you compare the trading volumes on 22 January with the volumes on 14 January, the contrast of passivity of buyers is particularly striking. Excessive passiveness of buyers at local highs on a daily basis reduces the chances of buyers to continue Ethereum price growing and strengthens the position of sellers. However, buyers competently stopped the price growth on 14,15, and 19 January.

If you look at the situation on the 4-hour timeframe, you can see how with each new attack aggression weakened and turned into a present inert attack:

Pay attention to buyers confidence before the first price correction in Bitcoin market and how many candles it took sellers to correct the price. In the second case, buyers were able to upgrade the local high. Although the growth was not as correcting as on 14 January. The second correction was much shorter and more effective, as sellers, with the help of one 4-hour candle, denied the achievement of buyers they achieved with 12^th candles.

Stoping the current attack of buyers does not need special volumes. It indicates a near beginning of Ethereum price fall with the first target $145. The main condition for this fall is the fixation of sellers below $145.

Marginal positions of buyers did not stop their fall for a day. And most importantly, the prospect of their decrease remains quite large:

Sellers for the 4^th day are highly anticipated to continue increasing their marginal positions:

Sellers’ mood and confidence in continuing to fall in Ethereum market are increasing.

According to the wave analysis on Ethereum market, assuming that on 19 January, sellers were breaking the local trend of buyers’ growth. Now, the wave (b) is completing its formation after which a sharp continuation of the fall in the form of wave (c) will begin:

Nevertheless, buyers were able to correct the fall from 19 January by 38.2%. It is a weak correction and gives the chance to sellers for more promising fall. This scenario will become relevant after an Ethereum price fix below $160. Let’s see on Saturday whether buyers will be able to significantly change the look of the weekly candle and test of the price zone $138-145.

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