The prince of cryptos still confused despite The Merge! – After his heavy fall a few days after his passage in Proof of Stake (PoS or proof of stake in French), Ether (ETH) is trying to limit the damage by not cracking below the $1400 support. Even if nothing is yet lost for the bulls. With the risk that prices would quickly fall towards its lows of the year.
At the time when the EDF brandishes the threat of more aggressive monetary tightening to combat inflation, the latest technical analysis of ETH would not encourage blind fishing. And despite a fairly substantial bear run since his last ATH in November 2021, the fate of the prince of cryptos would still remain on a tightrope. Indeed, the gains from the last technical rebound are gradually eroding.
From now on, the specter of a dive is becoming clearer. Especially since the bears, having stored up strength during the summer period, could regain control of business.
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Ethereum in weekly units – A status quo of prices under the Kumo which could soon be paid for in cash!
Where it’s hard to take for bulls from a medium to long term perspective, is that the status quo of Ethe pricesr below the Kumo (Ichimoku cloud) frustrates many cryptocurrency investors. And to drive the point home, the Chikou Span does the same with the probability of not going back above the cloud for a while. This could take months due to the significant thickness of future Kumo.
Besides, things could still go wrong. In effect, the Kijun, which itself remained stable not far from the resistance of $2300, begins to tilt slightly. Although this is hardly perceptible at first glance in weekly units, it is a negative technical signal which would not be timely given the gloomy market context on all risky asset classes. Because when the Kijun falls following a major price movement, the Tenkan follows it violently.
This is why ETH should not move away from the $1400 support in the coming weeks. Otherwise, the door would be open for a rally towards the $1000 support. At the same time, the bears should take advantage of sweeping aside the technical rebound since mid-June. And thereafter, they would prepare the ground to rush the heart even lower.
Ethereum in daily units – Beware of the pullback below $1400!
In daily units, the momentum would currently tilt in favor of a breakout of $1400. Especially since the prices of Ethereum and the Chikou Span fail to reintegrate into the Kumo. But despite last week seeing prices below that all-important threshold, it would not seem compromised at the time of writing.
Because precisely, ETH is painfully trying to reconnect with Tenkan. A passage above the most volatile curve of the Ichimoku, would allow us to hope for an uncertain return around $1400. And in the event of going higher, it is to be feared that the additional upside risk may come up against the Kijun, or the lower limit of the Kumo near the resistance of $1700.
In contrast, the bears would sense the potential pullback below the $1400 support at full nose. In this sense, this could constitute a first-rate technical signal to restart the bear run of the prince of cryptos since his last ATH in November 2021. On the sine qua non condition that the support of $1000 is subsequently broken down. And so the bulls would again find themselves in a stressful situation seeing ether price three digits.
Ether could possibly fall towards its lows of the year. We are bound to see that the graphical and fundamental elements would be aligned for this scenario. Many investors would naturally prefer to avoid it.
On the one hand, and in support of a FED determined to raise its rates whatever the cost, the meteoric rise of the American dollar against all the major currencies (euro, pound sterling, yen, Canadian dollar, Swiss franc, Swedish) would not plead in favor of a return of risk appetite in the long term. On the other hand, failure to make up for the losses of the last wave of correction during last spring would be enough to convince us that the bulls would struggle to make themselves heard.
Therefore, we still have to be patient to see the end of the tunnel of this bear run of the prince of cryptos. Itself, would not be very far from the standards of 2018. Hence the fear of soon witnessing a brutal return towards the support of $700, if at the same time, Bitcoin had the misfortune to break at the drop the $20,000.
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