Berezina continues for the prince of cryptos – We left Ethereum (ETH) at the mercy of $2300 last week. But it is clear that its technical situation has gone into a spin following the collapse of the stablecoin UST. This unexpected event, which shook the cryptocurrency market, led the prince of cryptos to match the lows of last summer. And despite a desperate jump around $2,000, the price trend is now experiencing headwinds, which themselves could be expected to persist over time.
This brings us back to graphical analyzes of ETH which would see a bear run since its last ATH in November 2021. Unfortunately, we have an almost total alignment of unfavorable technical signals. It makes you wonder if the decline of the past week is just a prelude to what could happen next.
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Ethereum – Confirmation of prices under the Kumo in weekly units
Seventh straight week of Ethereum price declineswhich would otherwise be a historic first since its existence, would probably confirm the break of its tidy or horizontal channel (orange rectangle) from below. At the same time, this unfavorable technical signal would support the descending line since its last ATH. Especially since we would also validate a requirement of a bear run with two lower and lower highs and lows.
Starting from this reality in weekly units, the price position of ETH against the various Ichimoku curves compromises the bullish cycle built since 2019 or the low points of March 2020. On the one hand, prices deviate from the lower limit of the Kumo (cloud), the Senkou Span B (SSB). On the other hand, the Chikou Span is doing the same by being carried away by the bearish wave since the last failure to date below the resistance of $3400.
And if that wasn’t enough, the Tenkan and the Kijun are syncing dangerously low. With the personal feeling that the panic phase could hardly have just started. In the event that last summer’s lows are sharply broken, the Ethereum bear run will continue towards the $1400 support.
Ethereum – $1700 support soon threatened
The daily chart leaves no room for doubt. Not only Ethereum prices and the Chikou Span remain below the Kumo. But last week’s acceleration of the decline was so devastating that the bottom of its range was shattered. This shows a panic attack on the part of investors whether we like it or not.
While a technical bounce off the $1700 support took place over the weekend to halt the bleeding somewhat, it served to correct a bearish excess following the big wick low of the candle last week. Nevertheless, sellers remain in a position of strength. Moreover, Monday’s session sees a bearish candle stumble under the Tenkan. But for the moment, it is not followed by the facts. It would probably only be a postponement given the gloomy context on the financial markets.
In the interest of not prolonging the bear run on the prince of cryptos, a demonstration by buyers around $1700 would become essential. Certainly, the possible rebound would not go very far due to technical obstacles such as the bottom of his range and the proximity of the downline. On the other hand, it would have the merit of delaying the capitulation phase hoping to find a catalyst capable of reversing the current uncertainties in the financial markets.
In summary, Ethereum’s price bear run since its last ATH in November 2021 would no longer be a shadow of a doubt. Barring a weekly close inside his range, the dice would seem cast. So at this moment, the ETH/BTC ratio has completely changed during this turbulent week. And that, in favor of a return to Satoshi Nakamoto’s digital currency dominance.
This would therefore mean that investors would still have to put the scenario of a possible ALT Season into oblivion. On the other hand, the continuation of Bitcoin’s bear run below $30,000 would accentuate that of the prince of cryptos towards the $1,400 support initially. In this sense, we would determine that the strong crypto/equity index correlation is not about to fade any time soon.
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