A new trading month on the Ethereum market is a new high. ETHUSDT buyers decided to establish this tradition starting from February 2021. However, will buyers be able to keep the tradition in June? Let’s figure it out. After setting a new all-time high at $4372 on 12 May, the ETH price began a light correction. By light correction, we mean an insignificant decline in the ETH price compared to aggressive growth. Though, if we pay attention to the trading volumes with this correction, we understand that a fierce struggle is being waged on the market. Since 12 May, the volumes for ETH sale have increased significantly. At the moment, buyers are effectively slowing down the Ethereum price. This is perfectly visible on a large timeframe:
Ethereum buyers need new strength to grow
Of course, good resistance from ETH buyers during an outright BTC price fall is a good signal. However, will buyers have the strength to start a new growth wave after such a grueling correction?
The all-time high update on 12 May gave us the opportunity to build a clear channel for the ETHUSDT price movement. As we can see, buyers were able to test the upper trend line of the white channel and stopped. This trend line has been lonely since February 2020. Therefore, for a deeper correction of the ETH price, sellers need to prevent the price from fixing above $4000.
Although, if you look at the ETH chart on the 6-hour timeframe, the test of $4000 is a rather positive scenario:
The chart shows that the ETH price stopped between the $3150-3250 price zone and the range of $4050-4180. The middle line of this consolidation is the mark of $3600. So far, buyers do not have the strength to fix above this mark. Considering that the local downward trend is not broken, we expect a breakdown of the range of $3150-3250 down and a test of $2650-2750. In this range, there is the middle line of the global growth trend, as well as the liquidity zone, which kept the ETH price in April 2021.
ETHBTC chart hints at the beginning of a correction
In addition, at least a slight correction is hinted at by the ETHBTC pair chart:
The growth without correction for several weeks indicates the strength of the trend. Thus, from the range, to which the ETHBTC price confidently approached in 2017, a one and a half year fall wave of the ETH price began. Therefore, we are waiting for blow off steam from the ETH market and an interesting price to enter the market.
