It is in a tense geopolitical context that I realize this market point concerning Ethereum (ETH). It is clear that the prince of cryptos has temporarily said goodbye to crossing the resistance around $3400. To drive the point home, he has just wasted a new cartridge by snapping the $2800 support. All of this raises fears that the rebound attempted since the end of January will ultimately have no effect.
Faced with this observation, what do the technical analyzes of ETH reveal to us in weekly and daily units? Revisiting recent lows would not be outrageous given the current financial market environment. Now, what are the key signals and levels that cryptocurrency investors should look out for to anticipate the next price movements of Ethereum?
This analysis of the Ethereum price is brought to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.
Ethereum back inside Kumo in weekly units
We believed Ethereum would hold $2800 to rally resistance around $3400. Unfortunately, following the renewed tension in Ukraine, the plan planned at the last market update fell through. It is explained by the failure of the two bearish candles under the Tenkan. The candle of this beginning of the week which opens under $2800, confirms at this stage a third consecutive week on the decline.
The fall of almost 20% over the previous week has resulted in the break of the support around $2800, which becomes resistance again and the passage of the price of ETH inside the Kumo (cloud). In the same movement with a prior lag of 26 weeks, the Chikou Span, the ultimate mainstay of Ichimoku, fell below $2800 respectively, the Tenkan and the Kijun. Although she remains above the Kumo, the concern begins to grow as the weeks pass.
A return to recent lows around $2300 gains in likelihood insofar as this key support is located a few dollars near the lower limit of the Kumo, the Senkou Span B (SSB).
Ethereum fails to cross the Kumo in daily units
In daily units, failed second attempt to break through $3400 resistance, dragged Ethereum prices back below Kumo in addition to the breakout of the $2800 support. Now they are in contact with the last downtrend line that was crossed a fortnight ago. Would we have found a signal that would allow us to start again on a good basis? Or, conversely, will the selling pressure be definitely back?
The significant thickness of Kumo would be a serious obstacle for the prince of cryptos to reverse the current trend. Besides, theCryptocurrency investors better pay close attention to the power of Ichimoku curves instead of the crossing of the downtrend line which had taken place in a supposedly calm context.
Firstly, ETH prices, which have returned below Kumo, are also well below Tenkan and Kijun. Which turns out to be a short-term negative signal from a chart perspective. On the other hand, the Chikou Span does the same (orange dot). Thus, we are closer to a return to the $2300 support, which itself will be scrutinized in the days to come.
In summary, I agree on certain points with Kolepi’s analysis regarding its downtrend. But on the form, there is matter to debate. Indeed, the price positioning of Ethereum and Chikou Span relative to Kumo in weekly units prompts me not to sell the bear skin until I have killed it.
We will be watching investors’ behavior around the $2300 support. This is a level that could prove itself again. In which case, ETH prices would first try to regain the resistance of $2800. Should positive catalysts arrive by surprise, the cards would be reshuffled by tackling subsequent resistance.
In the event of a failure below $2300, a bloodbath would loom towards support around $1800. It would be at this level that the buyers would risk coming forward to counter the sellers. Enough to potentially consider an entry point in a medium-long term perspective.
Is it possible to be gwinner every time? Whether the Bitcoin price is in great shape, or going through turbulence, Coin Trading offers you to increase your chances of success. Indeed, Trading Du Coin allows individuals to access an algorithmic and 100% automated trading tool. A real trend mechanism, this tool has been designed to adapt to market reversals and position itself on the most dynamic crypto assets of the moment.