Weekly consolidation has increased the chances of buyers.
Despite a rather boring trading week in the ETH market, buyers have won a chance to continue growing. During the week, the ETH price lazily moved in the range $370- $ 400, forming a thick layer of liquidity. On several occasions, sellers managed to go beyond this range, hinting at the fall continuation. However, on 16 and 20 September, these attempts looked like a provocation. As they were not supported by increased volumes at all. In addition, the local trend line, from which the price is steadily pushed without signs of struggle, shows an incomplete buyers’ attack:
As we can see in the chart, nothing special happens with volumes, in places where the ETH price touches the local trend line. The current attack in the form of a triangle aims to “squeeze” the protection of sellers. They have been protecting for the second week. The first attempt to break $370-400 looked quite rapid and with intention to quickly end the downtrend attempt. And now buyers are trying to exhaust sellers.
DeFi projects kept ETH.
An important role in stabilizing ETH price and fairly confident position of buyers in the market was played by the DeFi space, which currently exceeds the previous historical high. Based on defipulse statistics, total TVL of the major DeFi projects are $9.76 billion. The transactions increase in the DeFi space, and some high-profile news, such as “Uniswap has launched its management token” have proportionally increased interest to ETH. The fact that the ability to delay transactions due to Ethereum platform congestion could range from 4 hours to 24 at the time of launching UNI tokens is another story. Though, these facts made it possible to maintain the advantageous position of ETH, relatively to other promising coins.
The previous week in the crypto world was BTC Week. It is evidenced by BTC dominance, which for a long time finally stopped for a moment:
Due to the lack of volume in the crypto market, finances began to flow from other coins in BTC. BTC gave hope for growth, passing the mark $10,600. For example, the Defi coin with the largest trading volume LINK over the past week fell by 20%. The same applies to almost all DeFi coins, whose projects have grown steadily.
Global perspectives suggest an ETH correction.
Despite good ETH support on the DeFi part, so far the struggle of buyers for the range $370- 400 does not impress on the weekly timeframe:
The previous two weeks have not yet been able to compete with the crushing candle from 31 August. Therefore, to continue the growth of this coin and achieve the first target $440 this week, buyers must take control of $400. Otherwise, it will be another week of fighting for sellers’ good, which will cause a powerful falling impulse with a target $250.
Charts courtesy of Trading View