It’s hard to be patient for cryptocurrency investors. Indeed, the neutralization of the bear run of the price of Ethereum (ETH) is slow to resume, while an agreement on the ceiling of the American debt would be on the right track to be adopted successively by the House of Representatives and Congress. . While equity indices have benefited with the welcome help of Nvidia, cryptocurrencies in the broad sense have hardly evolved.
Even if the prince of cryptos has certainly rebounded, the latest technical analyzes do not show any positive or negative signals as we speak. As if it was amorphous since the last failure under $2000. From now on, the bulls are having difficulty driving the point home against the bears, so much so that the consolidation of the dollar and bond rates ceased throughout the month of May.
In a hesitant market environment despite the decline in volatility, let’s see if we are more advanced on the neutralization of the ETH bear run.
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Ethereum in weekly units – The $1700 preserved so far
After suffering for five consecutive weeks, the price of Ethereum was able to preserve the 1700$ returning to contact with the Tenkan and the middle line of the bullish channel. But on the other hand, it remains stuck below the psychological barrier of $2000. Which means at this stage that the neutralization of its bear run since its last ATH in November 2021 is hovering inside the Kumo (Ichimoku Cloud).
In parallel, the Chikou Span continues its advance towards the descending line and the cloud, even if it is done laterally. At the right end of the chart, the favorable crossover between the Senkou Span A (SSA) and the Senkou Span B (SSB) would give hope for a possible rebound to attack the resistance of $2000.
In the event of a crossing of $2000, the bulls would take a deep breath considering a price of ETH in the direction of $2300. In the interest of building a healthy bullish structure in view of a marked advance in the neutralization of the bear run, it would be desirable for prices to navigate inside the bullish channel over the next few weeks to protect themselves from signals of excess. purchase.
Conversely, it would be necessary to make sure not to break the $1700 under penalty of the bulls letting go. Because this would coincide with prices leaving the bullish channel from below, and therefore would partially call into question the rebound since the start of the year.
Ethereum in daily units – Price in favorable balance for an exit above Kumo?
In daily units, the price of Ethereum took advantage of a favorable Sunday to temporarily go back above the Kijun and come back into contact with the upper limit of the Kumo, the SSA. However, these somewhat favorable signals would not automatically presage a comeback. And for good reason, we are not far from seeing the price drop below the cloud in the event that it gives ground compared to the Kijun. Especially since the downward line since the last failure under $2000, could prove to be a short-term obstacle.
In the event of an abort of the rebound attempt, the prince of cryptos could be scuttled below the Kumo and towards $1700. A bearish extension below this support would cause an overflow of the bullish channel from below. With the objective that the bears would reappear to send prices towards $1400. In which case, we would be close to a resumption of the bear run.
Conversely, the bulls should wake up quickly to tame the downline and not be in danger in the short term. As a result, they would have a new chance to approach the $2000, hoping finally for a favorable outcome.
In summary, the price of Ethereum still seems to be in balance between two alternative scenarios: crossing $2000 and breaking $1700. For the moment, the neutralization of its bear run since its last ATH in November 2021, remains privileged given that the courses are well established inside the weekly Kumo. But the situation of marking the pants between $1700 and $2000 should not get bogged down graphically. Because the outcome could be violent one way or the other.
Until proven otherwise, it is clear that the prince of cryptos loses track each time he approaches $2,000. Wouldn’t this be a sign of feverishness on the part of the bulls? As the hesitation lasts, we will fear a return of risk aversion. Not only that, a new failure under $2000 could be more detrimental for the bulls, compared to previous attempts. But even worse, a downtrend reversal would be within reach should ETH return to $1400.
Pending the FED meeting in mid-June, the evolution of Ethereum gives the feeling of being at a crossroads. We could leave it at that, if no first-order catalyst would appear until this major macroeconomic event. In which case, the trend would be neutral in the short term.
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