The bright and long-awaited trading week in the ETH market did not meet the main expectations of buyers. The weekly candle closed at $601.35, leaving the pin in the range of $600-620. The hype surrounding the Ethereum 2.0. launch played a significant impact on the ETH price growth. But it could not steal the show from Bitcoin.
The main positive from the ETH 2.0. launch buyers felt on the mark of $460-480 breakdown, raising the price by 30% per week. However, the last days of the heat before the launch on the weekly timeframe recorded ambiguous candles. It indicates that buyers fixed profitable positions:
Buyers show local weakness
The ratio of last week’s candle and the high trading volume suggests that the range of $600-620 is a powerful selling zone. Despite the successful Ethereum update launch, the growth trend acceleration and the test of the main sellers’ resistance – $800-840 is questionable.
And despite the active increase of ETH validators, who with their 32 ETH daily strengthen Ethereum 2.0. The interest in ETH has fallen after December. In addition to the dominance chart, this is evidenced by the trading volumes:
As a result that two forces become active in the ETH market from 1 December, an important price consolidation in the range of $560-620 was formed.
The last buyers’ attempt to seize the range of $600-620 on 6-7 December ended badly. Buyers have not even been able to enter this range, as they have done the two previous times:
Given these facts, the probability of the price fall local continuation and the test of $860 is still higher than breaking $600-620 from current prices.
The mark of $560 importance in the ETH market
Positive news background prompted medium-term speculators in the ETH market to buy after the breakout of $460-480. The growth wave main volumes from 27 November were in the range of $535-560.
Accordingly, below $560, investors will actively fix their long positions to remain in a break-even situation or with a small loss. Therefore, by giving the mark of $560 to sellers, buyers will provoke a strong price momentum down.
Positive effect from the Ethereum 2.0. implementation will be felt gradually, with an organic growth of interest in the blockchain. Therefore, the local correction of ETH price growth will only test the critical range of $520-535 for strength before a long and happy project future.
Nevertheless, holding the mark of $560 buyers will prove their strength and the test of $800-840 will be without correction. Let’s see next week if sellers are brave enough to enter the bull market and swim against the current.