ETH Technical Analysis: The Danger of $3000-$3100 Test Is Quite High

Peter  |  Oct 11, 2021

The previous trading week in the Ethereum market closed not too positively for confident growth. A good initiative of buyers to fix above $3600 is not over yet. Throughout the previous week, buyers had a great chance to organize a sharp upward impulse and compete for the historical high update. Buyers confidently kept the local mark of $3600 and did not give sellers a chance to correct it. Several times a week, sellers still managed to lower the ETH price. However, such an attack ended in a false breakdown and a sharp reversal of the price.

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Though, on Sunday, sellers were able to break local buyers' support and question their strength. All these sharp events took place at low volumes, and we cannot speak confidently about market control by buyers at the moment. The probability of the $3100 test is quite high, which is possible next week. In addition, we are frightened by the fact that the price that fell out of the global growth trend can not confidently return to the channel. This fact indicates the weakness of ETH buyers at the moment and the need for consolidation to accumulate strength.

Technical Analysis of ETH on a Daily Timeframe

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Analyzing the ETH price movement on the daily timeframe, we see that buyers again failed to pass the range of $3600-$3700. After a previous failed attempt by buyers to take control of this range as of 15 September, the Ethereum price tested the mark of $2640. But, a confident price jump from this mark allows us to assume that buyers still began to turn after a local wave of decline. The final confirmation of this hypothesis will be the retention of the range of $3000-$3100 during the next attack of buyers.

As the second most important cryptocurrency after Bitcoin, the Ethereum market does not have enough volume to replicate the BTC growth just as confidently. Therefore, the only way out for buyers during the period of the Bitcoin dominance growth is to keep the price in the range allowed for growth. Below $3000, an increase in the ETH price will be possible only after a thorough correction and test of the range of $2200-$2300.

ETHBTC Price Has the Prospect of Falling by At Least 10%

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The ETHBTC price chart tells us about the high probability of the $3000-$3100 test. In the weekly timeframes, we see that the last candle did not close with a hint of growth. The ETHBTC price is in consolidation. And it is now moving to its lower limit. If buyers manage to keep the mark of 0.0053 then we can talk about updating the historical high in pair to USDT. However, the active growth of Bitcoin introduces intrigue and stimulates reflection on the question "How will altcoins behave on the BTC correction?" Therefore, at the moment, it is worth waiting for the ramming of the bottom in the ETH market and confirmation of the BTC strength. In this case, the investment will be less risky.

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