ETH trading week, which clearly began under the auspices of sellers, ended with their surrender. The weekly candle closed at $590 – by only 1.8% lower than the price at which the trading week began.
However, the 10% pin on the weekly candle indicates the great ambitions of sellers, which failed to realize.
A rather similar situation was observed during the week from 23 November, when buyers did not allow the correction start and updated the local low. The desire to catch up with the ETH high-speed train before the price breaks the critical range of $600-620 – became the basis for supporting buyers’ trend last week.
Sellers are too weak for their game
The nature of fall in the ETH market has remained unchanged since early December. After each local impulse of sellers there is a deep buyers’ counterattack. In the daily timeframe, this looks like a correction channel before a new wave of growth:
If during 24-26 November sellers showed their righteous anger, now the situation looks like the last breath before the surrender.
Daily trading volumes only confirm this situation. During the price fall from 1 December, trading volumes significantly fell. It indicates a low interest of investors to sell ETH even at local highs.
Buyers are ready for a new upward momentum
In the previous article we forecasted a break of $560 and a test of the range of $520 -535. The ETH price stop at the mark of $530 showed a new trend line of buyers and future local targets.
The price reversal was on 9 December, very smoothly and without additional efforts. Complete depletion of sellers gives new opportunities to attack the main liquidity zone of $600-620. High volumes during the break of this range will indicate the successful attack ending and continued growth with the first local mark of $680.
The critical point for continued price growth above $620 at the moment is $560. The loss of this mark and at the same time the trend line will lead to a test of $460-480.
ETH influence on the crypto market is not growing
A fly in the ointment is on the ETH dominance chart.
Despite the positive news background, the impact of ETH cannot exceed 12.5%. This struggle has actually been going on since August 2020.
Though, despite the ETH price lowering last week, the number of new Ethereum 2.0. validators increased by 20%. This fact shows investors willingness to invest in the project in the long run, even given the relatively high ETH price.