December 16 marked the beginning of a new era in the crypto market. Updating the BTC historical high, updating the local high in the ETH market – this is amazing positive news, especially at the end of the problematic 2020. On 16 December the daily candle closed almost at the local high in the ETH market, hinting at a carefree growth continuation in the coming days. However, on 17 December, buyers were unable to break out of the consolidation, which began on 24 November:
In fact, the ETH price monthly stop in such a consolidation predicts a continuation of the growth trend to $820-840. Particularly increased trading volumes during this consolidation eliminate the probability of the “wedge” reversal figure. It mostly indicates the end of the trend. At least so far there is no noticeable aggression in the form of volumes from sellers, as was the case in August 2020.
Above $676 the ETH Price Will Fly Up Like Crazy
Diagonal consolidation often indicates the strength of the trend. Its end is almost always accompanied by a sharp price impulse towards the trend.
If we analyze the current consolidation in more detail, it becomes clear that the most interested investors bought ETH at around $593:
Therefore, now the worst-case scenario for buyers may be a test of this mark, or rather the range of $585-593.
If the price fixes above $676 there will be the active ETH price growth continuation. A short stop above this mark will be a great signal of 25% price growth in the ETH market.
Though, the main condition, which we wrote about in the previous article, was fulfilled by buyers. At the moment, it is difficult to imagine the price fall below $600. Therefore, a breakdown of consolidation is still unlikely, and the test of $585-593 will be fortunate for those who did not have time to enter the ETH market.