The stability and confidence of the growing trend in the ETH market is impressive and makes us do a standing ovation. Starting from March 2020, the ETH price has been moving steadily within the orange channel. However, in May, the ambitions of ETHUSDT buyers significantly increased.
The rapid continuation of the DeFi ecosystem development, the successful Ethereum 2.0 implementation, the intensive growth of ETH holders and validators have caused a strong imbalance of supply and demand. These things led to a shortage of ETH and increased excitement about the coin profitability.
The weekly timeframe shows that since May, buyers have decided to try to accelerate the already strong growth trend:
Active Growth will Continue After Testing $3430-3560
The breakdown of the orange channel trend lineup happened at medium volumes. This fact increases the probability that buyers will be checked for strength before the ETH growth wave continuation.
Basic buyers’ support is in the range of $3430-3560. This range significantly stopped the Ethereum price growth on 3 May. In the daily timeframe, we see that after the breakdown of this range, sellers tried to regain control of it:
So far, this attempt by sellers has failed. The daily candle on high volumes closed with a pin down on 13 May. The small size of this daily candle indicates the density of buyers’ limit orders, so the interest to keep the price.
Though, for the active ETH price growth, a large number of buyers are needed who will buy at the market price. But there are still problems in the Ethereum market with that. Losing control of $3430-3560 will lead to a sharp price fall to $3000. In this case, the ETH price will return to the orange growth channel.
Ethereum Dominance Reaches Critical Level of 20%
The dominance chart also speaks about the ETH price stop and the probable correction:
The chart shows that the ETH impact on the crypto market has stopped in the range of 20%. Exactly two years ago, from this purple range began an active decline of the ETH dominance and it lasted until January 2020.
Therefore, at least we expect the ETH price to rebound from the current price level with the optimal target of $3000.
After the successful completion of the correction and checking buyers for strength, we will expect a new growth wave with a target of $5500.