While Ethereum (ETH) has just broken through the $3400 support for good (which is becoming a major resistance), and some market experts would have us believe that a market bottom is imminent, the he idea of further consolidation is gradually making its way towards $2800. A scenario feared by supporters of cryptocurrencies, but which could be logical in the sense that the prospect of a lack of liquidity from central banks would occur in the coming quarters.
Technical analysis of ETH in weekly and daily units at the time of writing, however, does not show any rebellion on the part of buyers. With this in mind, the next support around $2800 could only be a matter of time.
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Polarity shift around $3400
During the previous market update concerning the prince of cryptos, JdC readers were warned about the possible break of support around $3400. Now, the latter has changed its polarity unfavorably from support to resistance. Last week’s candle and the current one indicate ETH price failure below this level in addition to respective Kijun and Tenkan breakouts.
The idea of reconnecting with the support of $2800 should not cause a general panic in weekly units. In the event that this scenario were to materialize in the coming weeks, certain signals provided by the Ichimoku indicator prevent us from naively committing ourselves to the certainty of a bear market.
On the one hand, Ethereum prices would still remain above Kumo. On the other hand and simultaneously, the Chikou Span would do the same, while remaining inside the last bullish channel and slightly above the Kijun.
ETH Prices Away From A Short-Term Trend Reversal
When we look closely at the daily chart of the prince of cryptos, there is enough to win some gray hairs. The twice failure below the resistance around $3400 confirms that the bearish momentum is not ready to end, despite the flattening of the Tenkan and the Kijun over the past few days. The price move away from the Kumo is becoming increasingly worrying.
Note, however, that Ethereum is trying to build on the Tenkan. But this remains precarious, as it does not correspond to major support in daily units. With ETH prices and Chikou Span below Kumo and several key resistances, which is to say that we are far from the point to foresee a so-called upward trend reversal.
Even if the game could be difficult due to the significant thickness of the Kumo formed by the SSB and the SSA, it would still be necessary for the prices to approach it in order not to suffer a new sell off towards the support of the 2800$. Failing that, it would keep them away from the Kumo. And beware that the acceleration of the short-term downward momentum does not change the time horizon.
Hard not to see it: Ethereum is currently sinking if we refer to what is happening in daily units. The critical support of $2800 even seems promised in the coming days, barring a spectacular recovery above resistances or major obstacles.
However, in weekly units, the significant thickness of the Kumo still leaves us a margin of safety before speaking frankly of a bear market still only whispered on social networks. To end on an educational note, think about evaluating the evolution of the prices of a crypto in relation to its intrinsic fundamentals instead of being carried away by speculation, which could be painful both financially and psychologically. .
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