Great hopes for the growth trend acceleration in the ETH market and the confident systematic growth of the fundamental for the eco system DeFi coin crashed on the cliff of fall on 19 May. The global growth trend, in which the Ethereum price has been moving since March 2020, has begun a correction wave.
But it happened very abruptly, harshly, and in a panic. If we look at the daily timeframe, this came as a complete shock to many investors. As the ETH price was able to go beyond the global growth channel and has already begun to fix above the upper trend line:
Losing the Range of $3430-3560 Became a Sign for Fall Wave
The first signs of trouble in the Ethereum market became noticeable on 12 May. Due to the fact that the ETH price at that time was in the range of $3700-4000, the fact of increasing volumes during the ETHUSDT price lowering was ignored. In the previous article, we mentioned the critical point of the positive scenario for the continued growth of the ETH price.
It was in the range of $3430-3560:
As we can see in the chart, it is after breaking this range and fixing below that a new powerful fall momentum in the ETH market began on 18 May. Thus, the ETH price tested a strong liquidity zone, in which in February the ETH market significantly slowed for 2 months.
In addition to the range of $3430-3560, we see the importance of the mark of $3000 on the 4-hour timeframe. Although this mark was broken for the first time, the trading volume during its breakthrough was high. In addition, the ETH price rebound on 20 May stopped at this point. Therefore, the reversal of the current local downward trend will be final after fixing the Ethereum price above $3000.
If we analyze the ETH dominance chart in the cryptocurrency market, we can see that its figure has decreased.
ETH Buyers Believe in Market Growth Continuation
The chart shows the figure fell to 16%, but quite actively jumped to 18-19%. This fact shows that although many investors have been devastated by deposits, the majority keep Ethereum and believe in continued growth. This fact can be confirmed by analyzing the dynamics of new ETH deposits, while the ETHUSDT price falls:
The market is alive – that’s the main thing. However, after such a total price fall, it is worth calming down in a broad consolidation triangle. Therefore, in the near future the main target for growth will not exceed $3,000.