Ethereum market trading week passed in the consolidation range $230-246.
Sellers do not have enough strength to fix below $230.
The main target $280 with a stop at $250 remains our main scenario.
Ethereum trading week began with great prospects for buyers, but passed in the consolidation range $230-246. In fact, buyers’ attack began on 30 May, after Ethereum price was firmly fixed above $216. Since then, buyers and sellers have been competing, changing the local direction of price movement on a daily basis. The price transition to the marks $230 or $246 formed a false breakdown on the daily candle and served as a foothold for a counterattack by one or another force.
During the 7 days of consolidation, buyers tried 6 times to fix above $246, and sellers only twice touched the mark $230 with the false breakdowns. Starting from 4 January, sellers have taken the initiative in this consolidation. They intend to try for the third time to fix below $230 in order to continue falling to $215. However, looking at the volumes of trades and the appearance of the daily candles, we continue to expect a new attempt to break $250 and the test of $280.
Looking at the weekly timeframe, the slowdown in the growth trend from 13 March and the gradual decrease in trading volumes are noticeable:
As we see Ethereum price exit up after breaking $216 is not supported by increased volumes. We think that the current price range can be a support for sellers to start the growth correction from 13 March. The upper trend line, which sellers have been keeping on Ethereum market since June 2019, has not tested yet and in our opinion, the main forces of sellers are becoming more active after unsuccessful breakthrough of this line. Closing a daily candle with a small body and a large pin will confirm the global weakness of buyers, but will not deny the probability of a new test of $250 with a target up to $280.
Locally, we see in the 4-hour timeframe that sellers today are actively trying to close the daily candle in their favor:
However, Ethereum price is clearly slowing down from $238. In addition, trading volumes are insufficient to break through the liquid price zone. Therefore, the probability of a new growth attempt with a target $250 and a final $280 is quite high.
The dominance of ETH in the crypto market continues to be in the range of 9.9-10%, above the upper trend line of the triangle:
The targets according to the dominance chart are in the marks 10.22% and the final 10.8%. Summing up the facts, we believe that next week in Ethereum market should be a turning point for buyers. It will show how firmly sellers are ready to keep the trend line from June 2019. We wish you good luck in trading, keep a cool head and increase your profits!
Image Courtesy: TradingView
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