Didn’t we prematurely sell the skin of the bear before we killed it? Ethereum (ETH) prices are back to around $ 4,000 again. This key and symbolic level has been repeatedly broken. But hope seems to be reborn on the side of buyers who do not seem to give up. They cling to the idea of a year-end rally that would maintain the current bull run. If it were to take place, would it not be a simple trompe-l’oeil rebound in a bearish momentum since its ATH on November 10? History to definitely break down the key threshold of $ 4,000.
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Bis repetita for the bullish channel
The past week has seen ETH prices break the Tenkan, the average price of the high and low points of the last 9 sessions.
It stays a bearish alert in the form of a warning that does not indicate a major trend change. Supporters of cryptocurrency will take comfort in Ethereum’s ability to hold slightly above the bullish channel. However, the start of Christmas week is off to a bad start with an opening price slightly below the chart figure. The bull run put in place since the 1700-1800 dollars of July 21 remains a tightrope.
The weekly chart shows that the prince of cryptos is trying not to draw a line on support around $ 4000. In the same movement, the Chikou Span, a curve which replicates the variations of the underlying with 26 sessions behind, is in the same situation.
Even though the $ 4000 and the bullish channel are broken to the downside, we are far from envisioning a total reversal of the trend. As we mentioned during last week’s market update, the positioning of Ethereum and Chikou Span prices above Kumo (Ichimoku Cloud) does not support this scenario. The fact that the significant thickness of the latter (green patch) over a future projection of 26 sessions, testifies to the strength of the current trend.
Bearish momentum continues in daily units
Compared to the previous week, the graphical situation deteriorated slightly in daily units. ETH prices are now below Kumo and are close to the limit of the uptrend channel. The candles of the last few days testify to the inability to bounce back over the last $ 4,000. If this were to last, they would become a major resistance. An additional argument that would strengthen the bearish momentum since the ATH of November 10.
If by luck Ethereum came back solidly above $ 4,000, all would not be won in advance. The Kijun, the average price point average of the last 26 sessions, which has tended to be horizontal for several days, could block yet another rebound. The fact that it is at the same level as the Senkou Span N (SSB), one of the curves that makes up the Kumo, reinforces the idea of another major resistance.
Multiple failures around $ 4000 would be a harbinger of a return to support around $ 3400 with a simultaneous fall of the Chikou Span under the Kumo. It would spell the end of his bull run.
In short, the battle for $ 4,000 is still in full swing to preserve the Ethereum bull run at all costs. Between the weekly chart and the daily chart, we are torn between two feelings. The first is that optimism remains in the medium to long term. We are seeing that ETH has been doing well against BTC over the past few gloomy weeks.
The second is that uncertainty reigns in the short term with negative signals that would be validated in the coming days. As the end-of-year holidays approach, the drying up of volumes does not encourage risk-taking. Barring an exceptional turnaround in one direction or another, Ethereum would end up coasting between $ 3,400 and $ 4,000 in 2021, a price that has more than quintupled compared to 2020.
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