No, it is no joke what you currently see on Ethereum (ETH). In fact, it just reconnected with $ 3,000 due to a Bitcoin that failed below the $ 46,000 resistance, but that’s not all. The cryptocurrency king is in fact rumored to be seriously compromising his $ 41,000 support, as we started looking at $ 51,000-52,000 just a few weeks ago.
And this is not without consequences, this brutal reversal of the situation once again drags the prince of cryptocurrencies into an uncertain trend since his last ATH in November 2021. Moreover, the latest technical analyzes unfortunately militate in this direction. With unfavorable signs that are not the most encouraging for the rest of the events.
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Ethereum – Sudden return within the Kumo in weekly units
Actually, I had heard it the weekly Kijun at the $ 3400 resistance level would have given a hard time. It is clear that it has blocked the rebound that began since mid-March. As a result, the prince of Cryptos finds himself forced to re-enter the Kumo. To make matters worse, the $ 3,000 token bar wouldn’t be far from permanently collapsing.
Fortunately, Tenkan weekly plays the firefighters on duty in the fall of Ethereum as support. On the other hand, the Chikou Span, the last pillar of Ichimoku, is of no concern due to its position high above the Kumo (cloud). This means that the bullish cycle from 2019 remains valid, despite the bearish trend since the last ATH in November 2021.
In the short term, the real problem isn’t really $ 3,000, but rather the $ 2,800 range. The latter represents in a sense an intermediate level between the resistance of $ 3400 and the support of $ 2300-2400. And that is why it is so important to scrutinize for a throwback or a break. To know if we will see a new attempt to increase or a growing uncertainty.
Ethereum – Be careful not to threaten $ 2800
When I compare the daily chart with last week’s chart, it is day and night. Going from a bullish to a bearish scenario in a matter of days is enough to cause headaches for cryptocurrency investors. And especially when no one expected it. I was the first to think that the lights were green for Ethereum prices given the positions of the different Ichimoku curves.
The brutal failure under the resistanceand $ 3400 and the precise threat under $ 3000 led to unfavorable technical signals. First of all, ETH prices subsequently dented the Tenkan and the Kijun. Secondly and simultaneously, the Chikou Span joins the Kumo. But overall, the uptrend since mid-March is unchallenged as prices remain well above the cloud.
Also, in case of continued Ethereum consolidation below $ 3000, the next support at $ 2800 could act as a support to the upsidebecause it is at the conjunction with the ascending line of the symmetrical triangle.
In summary, this unexpected warning shot put the $ 4,000 win into oblivion. And at the same time, it tells us that Ethereum prices are returning with an uncertain trend. If hope gives life in daily units, the weekly chart would leave us in reserve. Indeed, the bankruptcy under the Kijun and the reintegration of the prince of cryptos into the Kumo in this long unit of time raises the specter of a dead cat bounce peaking lower and lower at the $ 3,400 level.
While it’s easy to blame the Fed for lowering cryptocurrency prices, that’s not where the problem lies. Because they essentially remain strongly correlated to the evolution of equity indices, and more particularly of the Nasdaq Composite. Especially since the Wall Street Tech Index is the first to suffer from the Fed’s more aggressive-than-expected monetary tightening.
It will be interesting to watch the US inflation release for March at 2.30pm today. It would risk generating volatility in all risky asset classes. And why not give a new shot of warning on cryptocurrencies, which in turn are struggling to perform in an inflationary environment beyond the usual standards of the past two decades.
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