Simple consolidation or threatened rebound? – While the Ethereum (ETH) price had made the most difficult by crossing the 1700 dollars, the announcement of the Commodity Futures Trading Commission (CFTC) of sue Binance, threatens them now. That said, the situation does not seem to be getting out of hand. Especially since the dominance of Bitcoin was evolving in a neutral way.
The latest technical analyzes of the prince of cryptos have certainly shown a downturn. With bulls valiantly trying to defend $1700. But would it be worrying if this key level were to break out graphically? Because let’s not forget that theEthereum remains on a bullish momentum since the beginning of the year. Investors who begin to take an interest in cryptocurrencies should not underestimate this change until proven otherwise.
In a market context where we are ending a fairly stormy month of March, let’s review the possible scenarios that ETH could face.
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Ethereum in weekly units – Prices currently above $1700 but below Kumo
Although the price of Ethereum is above the descending line, the crossing of $1700 remains to be confirmed, which for the moment is far from won. Because when we learned that the CFTC decided to sue Binance for obstructing the regulations, we witnessed an unfavorable turnaround yesterday afternoon during the American session. Prices made a brief foray below 1700 dollars before returning above this glass ceiling which is so important for many investors.
This backlash that no one saw coming, unfortunately maintains the status quo of the price of ETH and the Chikou Span below the Kumo (Cloud of‘Ichimoku). Meanwhile, the Tenkan and Kijun are stagnating below $1700 following last week’s doji. These signals delay the prospect of a neutralization of the bear run.
In the event of an unexpected threat below $1700, the bulls might take a hit. Firstly, prices could jeopardize the crossing of the descending line in the event of a rupture of the Tenkan. And on the other hand, the support of 1400 dollars near the Kijun would be put to the test.
On the contrary, a throwback on the $1700 would send a positive message about a possible entry of prices inside the Ichimoku cloud. A margin of safety above this key threshold would pave the way towards $2000and therefore that of the neutralization of the bear market of the prince of cryptos since his last ATH in November 2021.
Ethereum in daily units – Prices under the Tenkan
In daily units, the threat below 1700 dollars is becoming clearer. Indeed, the price of Ethereum falls below the Tenkan. But on closer inspection of the graph, the significant gap between the Tenkan and the Kijun for a few days, made us fear a consolidation in the short term. If it hasn’t happened yet, it could happen by this week.
Fortunately, the prince of cryptos has been moving in a bullish channel since late December 2022. The fact that it is in the upper part of the chart pattern, would encourage the bulls not to panic so far. Especially since the courses and the Chikou Span still remain above the Kumo. At this stage, a short-term consolidation would not spoil the scenario of a neutralization of the bear run.
In the event of several sessions of the same ilk as yesterday, the price of ETH would return in the direction of the Kijun and could quickly slide under the Kumo due to its tiny thickness as we speak. As a result, it would risk finding itself in the lower part of the bullish channel. And both bears and bulls would watch $1400 carefully.
Conversely, the upside potential would seem limited for the moment given that prices are struggling to exit the bullish channel from the top. If the bulls would like to definitively take control against the bears, a consolidation in the direction of the Kijun followed by a throwback on the curve of the Japanese indicator would preserve prices and the Chikou Span beyond the Kumo while waiting for a major catalyst. .
In summary, the CFTC’s cold shower on Binance’s regulatory irregularities on US soil does not come in an ideal market context. But this in itself is not a surprise, because the cryptocurrency market got used to this type of news after Luna collapsed. And probably this case would be a pretext for profit taking. If this eventuality became credible, the prospect of a neutralization of the Ethereum bear run since its last ATH in November 2021 would gain in probability.
In this sense, the reintegration of courses within the Kumo into weekly units would prove decisive. With the hope that the prince of the cryptos quickly rallies the 2000 dollars or see the 2300 dollars. This would temporarily keep away the sales impulses. Otherwise, the bulls would return to the demons of last year, if yet another failure under $1700 were to occur. Even if it would not jeopardize the rebound of ETH since the beginning of the year.
It is from the 1400 dollars that we would worry. Not only that, a break from this support would see prices exit the bullish channel from below in daily units. But even worse, the bears would relaunch the battle towards 1200 dollars for a resumption of a new wave of correction below the symbolic barrier of 1000 dollars.
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