The hot start of a new trading week on the ETH market reminded market participants that in addition to buyers, there are also sellers. The main resistance range of $1255-$1360 withstood and the ETH price aggressively went to the correction. In fact, during the day sellers managed to lower the price by 30%. In such a way, they disarm all investors who bought in the period from 4 to 9 January. Trading volumes were high during the price fall, but buyers managed to keep the trend line:
ETH buyers recovered fairly quickly from the unforeseen situation. And already on 12 January on a daily candle, they showed readiness to defend their territories. In the chart, we see that on 12 January, sellers failed to continue the fall, although the volumes spent on it were high. Thus, buyers won a new chance to test the range of $1255-$1360. However, given the rapid price growth recently and the same rapid fall, a very likely scenario of continued consolidation and the formation of a triangle:
An unsuccessful attempt to break the range $1255-$1360 will delay the growth continuation for week
As a rule, after such sharp ambiguous movements, market participants begin to fall into two categories. One is convinced that this was a correction that buyers were able abruptly to stop, and the ETH market is waiting for an update of the historical high. The second category thinks that the sharp fall on 11 January is just the beginning of the correction. Accordingly, they occupy short positions. This struggle can go on for a whole week. Although, given that the growth trend is extremely strong, the probability of a breakout of such a triangle up is much higher.
The ETH critical point of this scenario is around $1080. After breaking this mark, sellers will open the way to $930. Consolidation is a very exhausting thing. Let’s hope we are wrong, and the current buyer’s attack successfully hits the range of $1255-$1360.