2021 will have been the year of the emergence of Ethereum (ETH). Its price has indeed gone from 737 to more than $ 4,000 to the point of dominating Bitcoin by insolent growth. Although a year does not make a long-term trend, one is entitled to wonder if it will ever overtake the king of cryptos in terms of market capitalization. Even though this prospect is distant, investors should include this scenario in the back of their minds. If we look back at the news, the weeks go by and look the same. Ethereum keeps yoyoing around the $ 4,000 mark. It is clear that it is a hard battle between buyers and sellers around this key and symbolic support. And technical analyzes in weekly and daily units leave room for uncertainty.
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Ethereume: A fifth consecutive week of decline
Our very strong attention on the bullish channel and the support of the 4000 dollars, made us forget that Ethereum could end a fifth consecutive week on the downside. Which would be a first since November 2016. And if it were to be a reality, the bull run put in place since July 21 would again be put to the test.
In weekly units, ETH prices remain slightly below Tenkan, the average high and low point price of the last 9 sessions. We see that it flattens out to the point of becoming resistance as well as the lower bound of the bullish channel.
If the two resistances which are at the same level at time T fully play their role, the rebound attempts would end in failure. The sellers would have the final say if the $ 4,000 support was to jump for good. However, the underlying trend (not to be confused with the current bull run) remains bullish. ETH prices will still be above the Kumo (Ichimoku Cloud). Ditto for the Chikou Span, the curve which takes up the variations of the underlying with 26 sessions behind.
It should be noted that seeing the prince of cryptos return to the Kijun or the $ 3,400 would not in itself be a disaster given its rise since mid-2020.
Persistent short-term bearish momentum for Ethereum
In daily units, the rebound over the Christmas weekend did not have the desired effect. The graph below clearly shows us that Ethereum prices stumbled on the bullish channel bound, the Kumo bottom and the Kijun, the average price point average of the last 26 sessions, over the course of a few days. This triple negative signal does not delight supporters of cryptocurrencies.
Now the sellers could launch the counterattack on the $ 4,000 support. In the same line, the Tenkan would be depressed while the Chikou Span would go under $ 4000 and the Kumo. The next targets would be respectively support around 3600-3700 and 3400 dollars which are close to the weekly Kijun.
If the prince of cryptos managed to stay above $ 4000 and inside the bullish channel, the downtrend line (in orange) from its ATH on November 10 would be a big obstacle for a lasting rebound.
In summary, Ethereum will close a 2021 year of all records regardless of the fate of the $ 4,000 support. The fact that it clearly outperforms Bitcoin, testifies to the gradual maturity of the cryptocurrency cycle. The most informed investors indeed realize that it is an asset class in its own right and a serious component in the context of portfolio diversification.
After the dominance of Bitcoin in 2020 (phase n ° 1) and the revelation of Ethereum in 2021 (phase n ° 2), the year 2022 could constitute phases 3 and 4 of the cryptocurrency cycle. Phases which promise to be exciting and which could be characterized by an explosion in the prices of certain altcoins.
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