Ethereum Price and Technical Market Analysis May 24th, 2020

• Sellers kept $196 and are now moving for the test of $216.

• The dominance of Ethereum in the crypto market is increasing and tends to 10%.

• The main growth targets $230 and $250 remain in force.

The last two days in Ethereum market have passed in the recovery of the price level after the fall on 21 May. Within two days, Ethereum price rose by 6%, in fact completely recovering its positions from 20 May, giving buyers a chance on the growth continuation. The price growth during the previous two days was on average volumes, which shows sufficient interest of buyers at least for the re-test of $216.

An interesting fact is that there were more market purchases on 23 May, when the daily candle closed below the opening price. On 22 May, although buyers were able to raise the price on Ethereum market by almost 5%, market sales were 50.2%. Sellers do not have enough strength to slow down the price in this range and their last foothold is at $216. Whether buyers will be able to break the consolidation in the range $196-216 depends on the activity of trading today and their volume. However, the trend line is under the control of buyers and a local initiative also belongs to buyers. Let’s see if they can take advantage of it.

In the 4-hour timeframe, we see the formation of a local consolidation of Ethereum price in the range $205-210:

In our opinion, buyers are preparing for a breakthrough of $216 in this consolidation. Having fixed above it, the probability of continued growth and the first stop at $230 is very high. Sellers are less likely to fix below $205, but under this scenario the critical point is the range $194-196.

ETH’s dominance in the crypto market continues to increase and currently is 9.16%:

It is significantly noticeable compared to BTC, if we compare the rebound organized by ETH buyers and BTC buyers. Therefore, in the case of consolidation or slow growth of Bitcoin, Ethereum will grow much more aggressively.

Looking at the weekly timeframe, the situation in Ethereum market looks ambiguous:

At the moment, we see that sellers do not have enough strength to start forming a correction to the growth from 13 March. Nevertheless, looking at the current weekly candle, buyers also do not have enough strength. If buyers manage to fix above Ethereum price $216 today, then next week should be positive for them. Otherwise, global consolidation in the range $187-216 will continue. There are no preconditions to change the main scenario yet. So, let’s see if buyers will be able to reach our first target $230 by Tuesday.

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