Ethereum Price and Technical Market Analysis January 25th, 2020

• Recently, sellers had unsuccessful attempt to fix below $160.

• Buyers continue to actively close margins, not believing in the growth continuation.

• Ethereum price is now at the crossroads of 2 scenarios — continuation of consolidation within $160-180 or continuation of the fall to $138-145.

Over the last two days, sellers in Ethereum market have failed to fix below $160 and continue their sharp fall to the range $138-145. We have talked about such prospects in our previous analysis. And now we see that sellers are trying to cope with the first target. Yesterday’s attempt to break the local mark $160 ended with a slight increase of Ethereum price to the mark $164. However, today sellers have begun a new attempt to attack, which is likely to end well.

One of the reasons for such thoughts is noticeable on the 4-hour timeframe at yesterday’s attempt to break through $160:

Note that with the breakthrough of $160 on the 4-hour candle, a relatively large volume formed, indicating some buyer interest in this Ethereum price. However, each successive growth candle happens at a smaller volume. It means that buyers are not ready to buy globally at current price. It is confirmed by the fact that sellers without problems on small volumes returned the price to $160 again.

Although, if sellers are unable to continue their fall in Ethereum market in the next few days, then a new consolidation will be formed with the limits $160-180. And buyers will again try to continue their growth. In this view, we were inspired by the trading volumes on the daily timeframe, which at the critical point instead of increasing begin to decrease.

Margins of buyers decreased significantly on 23 January, coming out of the wedge this time down:

Buyers tension is increasing and panic will begin with a test of $138-145.

Sellers want to remain uncertain, as shown by consolidation on the marginal positions chart:

According to the wave analysis on Ethereum market, the situation is similar to Bitcoin:

Buyers were able to correct Fibonacci level .0382 and the next local stop is possible at $153. In any case, sellers first need to fix below $160. Then we can estimate the chance of a sharp fall to $138-145 and the chance of a passive fall with the first stop at $153. See you on Monday, we will write a weekly analysis of Ethereum price movement.

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