The beginning of spring had a very positive effect on Ethereum. After a powerful fall wave in late February, buyers managed to gather strength and organize a new local growth wave. The main signal for action for buyers was the horribly closed daily candle on 28 February:
The chart shows that sellers wanted to close the month in their favor. However, the test of the important range of $1260-1360 showed that there are still many buyers in the market who are waiting for favorable prices. As a result, the daily candle closed with a big pin down on 28 February and intensified the buyers’ counterattack.
Buyers unprepared to Provide a Global Initiative in Ethereum market
The main success of this attack lasted from 6 to 8 March. During these days the ETH price has increased by 21%. Given the fact that this growth was at the average volumes, we can conclude that in this 21% range there were no interested sellers. And to conclude that, buyers are really strong and ready to conquer new heights, there is a range of $1770-1870.
In the previous article we predicted a test of this range and the probability of the correction continuation in the ETH market with a final target of $760.
The failure of buyers to keep the range of $1770-1870 was the reason for the total Ethereum price collapse in February and the loss of the trend line of the growth channel.
Therefore, as long as the ETH price is below this range, the local growth wave from 1 March will be perceived as a correction before a new powerful downward momentum.
Previous All-Time High Hints towards Exhausting Consolidation
Although, if we look at the weekly timeframe, another highly probable scenario of broad consolidation in the ETH market is obvious:
As we see, buyers are quite confident in returning the ETH price to previous values. As buyers kept the critical range of $1260-1360, the ETH price may continue to move between the two liquidity zones. This consolidation can last on the ETH market until the end of April.
This triangle will be interpreted as the ETH price fixing above the previous historical high to continue medium-term growth. Given the importance of Ethereum in the crypto world, including the DeFi ecosystem, we are more inclined to this scenario. In this case, we need to be patient and bravely experience the ETH market break.