Will the prince of cryptocurrencies finally surpass $1700? Ethereum (ETH) price offered $1400 scalp after long procrastination on $1200. However, there is still no talk of a major breakthrough, namely a reversal of its bear market since its last ATH in November 2021. Because precisely, the high is yet to come with the resistance that has given the bulls a hard time in the past.
But driven by the fall of the dollar and bond rates linked to a lull in inflationary pressures and the hope of a flexible monetary policy from the FED, the positive momentum of the last few weeks on the prince of cryptocurrencies suggests that the technical barriers hampering trends of purchase, may sell. So, after it takes off, will Ethereum really take off?
In a market context that looks like a fairy tale at the beginning of 2023, let’s now see the latest technical analyzes of the ETH price and the possible scenarios in the coming days/weeks.
In a streak of three consecutive weeks on the rise, the Ethereum rises in the direction of the Kijun with the crossing of 1400 dollars. Now nothing is missing to write off the losses related to the bankruptcy of FTX. However, strictly reading the weekly chart, the bulls should not get carried away with enthusiasm.
First of all, the status quo of the ETH price and the Chikou Span under the Kumo (Cloud Ichmoku) unfortunately you go their merry way. Second, the Tenkan and Kijun are struggling to build up momentum, despite the ongoing bounce. And lately, the crossing of the bear race descending line which has certainly occurred will not be convincing if prices do not break free from the $1700 resistance. Especially since the latter has caused serious problems for the bulls during the second half of 2022 on three occasions. And as proof, the orange dot testified to the Chikou Span’s inability to tame it.
Assuming Ethereum withdraws from Kijun, the bulls would have the opportunity to attack this $1700 psychological wall again. And if they can complete their mission, then we could meet again a price flight within the Ichimoku cloud and possibly in the direction of $2300.
In case of failure under the Kijun, a consolidation could take shape in the direction of the Tenkan, not far from the 1400 dollars, to then go on better. But if the more volatile curve of the Japanese technical indicator were to be nicked, we would risk going back towards 1200 dollars.
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Ethereum Daily Units: Sound Consolidation Before Attacking $1700?
In daily units, the Ethereum course is finally positioned above the Kumo. At the same time, the Chikou Span mimics this as best as possible by also crossing the descending line of the bear run. With an open field becoming clearer, the odds of moving back towards $1700 increase. That said, the fact that the bullish gap between prices and the Tenkan is significant would encourage favoring short-term consolidation at the risk of accentuating signs of overbuying.
In the interest of building a potentially solid rebound, it would be best to go through this scenario which would avoid generating the onset of unhealthy behavior in many investors. In this sense, a return to $1400 would not be outrageous to validate its favorable polar shift (transition from resistance to support). Which would coincide with a support on the Tenkan.
Assuming this plays out as expected with higher lows than previous ones, a new and more powerful upswing could potentially emerge when it breaks above $1700. In which case, the bulls would aim for $2,000 in the near future. Conversely, a fourth failure below $1700 accompanied by a breakout of $1400 would send the prince of cryptocurrencies below the Tenkan and Kijun towards $1200, not far from the Kumo limits.
Now that Ethereum is out of the end-2022 crisis, the main problem in the short to medium term for the bulls would be to favorably threaten this $1700 resistance. With the prospect of the bear’s run since its last ATH in November 2021 initially being neutralised. This would put pressure on the bears.
However, the cryptocurrency prince’s rebound so far is only based on catalysts related to hopeful reasons for the end of the Fed’s monetary tightening. Only that the US central bank may have a different opinion on market expectations. Precisely because he doubts that inflation in the United States will return below the central target of 2% for structural reasons.
As a result, the FED would no longer have sufficient leeway to relaunch quantity facilitation which would flood the financial markets with liquidity. With the fear that inflation will gallop back to very high levels. Therefore, this would strike a new blow to all risky asset classes. If so, the environment risk averse would still be appropriate, and more particularly on cryptocurrencies as they remain correlated to financial stress.
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