Finally a technical rebound from the prince of cryptos? – It was about time Ethereum (ETH) regains its image somewhat after two months of endless decline. But however, the evil was too deep to prevent a bear run that I felt was coming both graphically and fundamentally. And this, since the last failure to date under the resistance of $ 3400 to which many investors have naively ignited at the time of a so-crossing.
If at present, the bear run of the prince of cryptos follows its course, the downside pressure would seem to calm down temporarily. In this sense, the fact that the support of $1700 still holds, could give rise to a possible technical rebound, and this, despite the last blows that followed after the collapse of the UST.
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Ethereum – The end of the black series but the sellers keep their hand
The current rebound in Ethereum prices from the $1700 support would halt a historic streak of nine consecutive weeks of decline. For this, a weekly close above $1805 would be required. Which is far from won at this stage even if the doji of the past week shows that the sellers are reluctant to drive the point home definitively. Insofar as the current uncertainties on the financial markets are partly priced in, they would do better to calm things down in order to better recharge their batteries. Hence the hypothesis of a technical rebound which, as a reminder, would not call into question its bear run since its last ATH in November 2021.
Moreover, cryptocurrency investors should be content with it until further notice. Because precisely, the price position of ETH against the Ichimoku curves in weekly units, tends towards a purely negative bias. On the one hand, ETH prices and the Chikou Span are drowned under the Kumo (cloud). And on the other hand, the Tenkan and the Kijun drop in a coordinated way so that the second is not far from imitating the first by possibly breaking the bottom of the cloud, the Senkou Span B (SSB).
In the event that Prince of Crypto prices and the Chikou Span simultaneously confirm support at the $1700 support, the potential for the technical bounce would lead us down her tidy or horizontal channel (orange rectangle) at $2300then possibly the resistance of $2800 which is close to the descending line.
Ethereum – Fragile stability around $1700
If a technical rebound is starting to show up, it’s because the daily chart is signaling that the sellers aren’t managing to break through the $1700 support. Especially since we see a tidy between $1700 and $2000. This would show a loss of bearish pressure on the condition that the candle on Tuesday does not come out from below. In which case we would be heading back towards the levels of the first quarter of 2021, a period of bullish madness in favor of altcoins.
A new jump in ETH prices on the $1700 support would favor the simultaneous crossing of the Tenkan and the Kijun. At the same time, the Chikou Span would do the same. Then assuming that the intermediate resistance of $2000 were to be crossed, the prince of cryptos would quickly see the bottom of his range at $2300.
However, ETH Prices and Chikou Span Could Be Held Back by Kumo Amid Bearish Market since the break of the bottom of his tidy during the unfortunate episode of the UST on May 12.
Although Ethereum’s bear run since its last ATH in November 2021 continues its way of the cross, it would be logical to see a technical rebound towards the resistances mentioned in this article. Indeed, sellers would do well to save ammunition to trigger a new bearish wave. This will probably involve taking profits or buying back shorts for people who wanted to bet on the breakout of $1700.
However, without being a bad omen, a Bitcoin that has the worst difficulty in bouncing back would be a handicap for the prince of cryptos. Especially since their correlation between the first two cryptocurrencies remains high in periods of decline.
Therefore, the fear of seeing the ETH bear run dig deeper would become a scenario to consider. Because the perspective of the weekly Kumo on future periods does not breathe serenity in the medium to long term. We are, perhaps, far from a capitulation, because many influencers on social networks underestimate the ability of central banks to respect their monetary tighteningwhich itself is not very favorable to cryptocurrencies.
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