Ethereum market trading week turned out to be quite positive for buyers.
Buyers managed to raise the price by almost 20% for the week after they kept the mark $332. The ETH price chose the alternative scenario we wrote about in the previous article.
The daily timeframe shows that sellers did not create any resistance, allowing to set a new local high every day. However, the situation remains tense.
The fact is that for the second month, the ETH price is in a wide consolidation corridor $312-400. Now buyers are storming the upper limit of consolidation for the second time. Trading volumes remain average. If we compare the current volume with the trading volume in the period from 7 to 17 September, now the enthusiasm of buyers looks weaker.
In order to better understand the current buyers’ mood, we need to take magnifying glass and look at smaller timeframe:
Pay attention to how carefully buyers behave, testing the strength of sellers before each subsequent impulse. In fact, the ETH price growth continuation was on the counterattack, as sellers initially broke down the local consolidation on 12 October. Though, this fall helped buyers increase their positions and organize the test of critical point $393.
So far positive news has little effect on the Ethereum dominance
The situation with the ETH dominance has not changed for the better yet:
As we can see in the dominance chart, the indicator cannot fix above 12.4% and so far it is in favor of the ETH price fall continuation.
Despite the fact that the Defi market recovered well last week, Ethereum was not significantly affected. The reduction in gas prices, it happens systematically since 21 September, also is not pushing the DeFi space investors to actively invest yet.
Ethereum co-founder Vitalik Buterin recently spoke about the ETH commissions decreasing tendency. Therefore, despite the declining impact of ETH in the crypto world, the preconditions for growth remain.
Ethereum after breaking $393
Of course, at the moment it is early to talk about breaking the critical point $393. Buyers did not show much interest during the price test yesterday. And sellers did not respond with a sharp counterattack, as they did on 2 September.
Now, buyers are skillfully keeping the price, preparing for a new attack of the upper limit of consolidation. Fixing above the price without problems will continue growth to the mark $440. Under this scenario, buyers can meet serious resistance at around $470.