New lows of the year in sight for the prince of crypto? – Since the failure of FTX, nasty surprises have followed on the cryptocurrency planet. To the point of fearing harmful repercussions, even if the damage has already been done. And to clarify the point, the price of Ethereum (ETH) is now in the center of the turmoil. Indeed, we will see when it is hot that it is about to break. One wonders if the prince of cryptocurrencies won’t soon mimic Bitcoin through the new lows of the year.
The latest technical analysis has pointed to signs that by themselves would not delight the bulls. With the feeling that ETH’s bearish run since its last ATH in November 2021 could be accentuated by returning to the standards of that of 2018 in terms of percentage decline. While we are not there yet, the scenario for a new wave of correction continues to swell. Especially since the engines that had made it possible to temporarily straighten out the prince of cryptocurrencies may no longer be enough.
In the face of a crisis of confidence that is hitting the entire crypto ecosystem hard, let’s take a close look at what the weekly and daily Ethereum price charts would offer us. But first, let’s talk about its balance of power against the king of cryptocurrencies.
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ETH/BTC – Ethereum has reached the bear cycle of cryptocurrencies
Since mid-June, Ethereum has fallen slightly against Bitcoin due to the surge in the ETH/BTC ratio. And in hindsight, it’s no wonder that the former had this ability to quickly come back into contact with certain resistances. Not to mention, we haven’t observed any new ATLs at the time of writing.
But since the news of FTX’s collapse, we’ve been in touch the prince of cryptocurrencies would risk getting caught up in the harsh reality of the cryptocurrency bear cycle. During which Satoshi Nakomoto’s digital currency could have the final say as the market leader.
In case ETH/BTC breaks through the support at 0.066, we will come full circle from mid-June last year towards 0.055. With this Wheater a more struggling Ethereum than Bitcoin.
Ethereum Weekly Units – Heading for a Fourth Straight Week of Decline?
We recall that in mid-August Ethereum had touched $2,000. From now on, he could chain a streak of four consecutive weeks of decline as prices have teetered once again below the $1700 resistance. Especially as we are approaching the $1000 support, not far from the lows of the year. And in order not to do bullish business, the price situation of the prince of cryptocurrencies with respect to the various Ichimoku curves could get worse.
First, the future Kumo sees its thickness increase in such a way that the prospects for the start of a favorable trend reversal would become more complicated until forwarded 2023. Second, the start of bearish synchronization between the Tenkan and the Kijun would potentially signal that the bearish race to resume is only a matter of time. And lately, you won’t be surprised to learn that the status quo of ETH and Chikou Span prices under the Kumo (cloud) has persisted for many months. And I fear a deep stalemate on this issue until capital’s resistance is overcome.
In any case, a return of Ethereum close to the $1000 support would be in sight. And if that precise moment happens quickly, serious things could begin. As for the bulls who took a hit from behind, prices would have to extricate themselves above the $1400 resistance to get out of this bad spell. But given the scale of the devastation of FTX’s bankruptcy, that scenario is unrealistic at this point.
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Ethereum in Daily Units: $1000 on Hand?
Despite the desire to bring you good news, Ethereum has seen its momentum degrade in units per day. On the one hand, the prices and the Chikou Span are lower than the Kumo. The Tenkan, on the other hand, rejects the prices where the real troubles of FTX had started, more precisely on November 9th. And like nothing goes, the support at $1,200 has given way definitively.
The average of the three unfavorable signals means that the downward movement could resume even more strongly, to the chagrin of the bulls. In this hypothesis, $1000 or year lows would be within reach in favor of the bears. With the aim that the future new wave of correction could potentially spread towards the $700 support or why not the $450 support.
Conversely, we do not rule out the possibility of a rollback to $1000 or an immediate bounce without rallying to year lows. But on the other hand the bulls will have to get rid of the Kumo and the $1400 to consider a start to exit the crisis. What is not won in advance.
While a lot can happen one way or another, it all seems to converge towards a rapprochement of Ethereum towards 1000 dollars. Not only do we see unfavorable alignment of prices and Chikou Span versus Kumo, both in weekly and daily units. But the prince of cryptos would be on the verge of breaking through to the point of preparing a possible flood.
Bulls and bears would look closely at the $1000. Because this very level, important and symbolic, will seal the fate of Ethereum in the coming months. The breakout would result in a run to the bottom that would enter phases that could undermine investor sentiment. On the other hand, a rollback would serve to repel the attacks of the bears at first, failing to build the milestones of a favorable trend reversal. And as such, it would be a miracle given the recent news on the crypto planet.
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