Can’t wait for the bear race on the prince of cryptocurrencies to end? – Hopes are currently outpacing fears regarding the recent evolution of the price of Ethereum (ETH). Indeed, it is supported by inter-market factors such as declining dollar and declining bond rates. Not to mention, leading indicators could potentially predict a change in Fed monetary policy in the near future. However, it might be wiser to wait for his meeting next Wednesday at the risk of taking bad initiatives that could be paid for in cash.
However, we will keep the impression that the bears may in part start to really give ground. However, losses due to FTX bankruptcy cannot be erased with the stroke of a pen. Even if a good part of this risk is already well integrated in the courses of the prince of cryptocurrencies.
In a market context where the greatest uncertainties seem to want to gradually subside, let’s carefully examine the latest technical analyzes of ETH.
Ethereum in weekly units – The prices above the Kijun
Validating a third straight week higher, Ethereum is now crossing the Kijun. This allows him to come back close to the resistance of the 1700 dollars, the level at which the bulls are blocked psychologically. But unlike previous attempts last year, we have some graphical cues that deserve a closer look.
First of all, the price crossing beyond the descending race-to-the-bottom line would gain in value. Provided the $1700 is expanded. Secondly, the Tenkan is starting a bullish momentum, which itself would require confirmation in the coming weeks. And lately, the fact that the Chikou Span has nearly returned to $1,700 with a previous lag of prices by 26 weeks would temporarily save us from the blows of the bears.
In case the bulls manage to get rid of the $1700, we could partially challenge the status quo of the price of ETH and the Chikou Span under the Kumo. In this sense it would concern the first one who would return inside the Ichimoku cloud. With the goal that it rises towards 2300 dollars.
Conversely, yet another rejection below $1700 would lead us to two possible scenarios. Or we would go ahead a consolidation accompanied by a return to the past on the 1400 dollars before a new bullish wave. Otherwise we would fall back into last year’s failures. And in this case, we would risk falling back towards $1200 or lower if the market environment were to turn.
>> Put your cryptocurrencies into the green. Choose a Ledger Wallet (trade link) <
Ethereum in daily units
Last week, I hinted at a consolidation due to a large upside gap between the price of Ethereum and Tenkan in units per day. Finally, this over-purchase warning was corrected without incident. Because thereafter, the rebound of the prince of cryptocurrencies currently extends towards $1700. With courtyards and a Chikou Span that sits well above the Kumo.
Now the immediate issue would be whether ETH has the ability to maintain this strong rebound to hit the next resistances. And at first glance, there would be reason to wait for better technical conditions to accelerate the upside. The evidence is that the Kijun has stopped its bullish momentum for a few days. So much so that he deviates from the Tenkan.
Assuming $1700 turns out to be an armored bulwark against the bulls, the price of Ethereum would end up landing in the direction of $1400, not far from the Kijun, but with a passage below the Tenkan. This would simultaneously correspond to a consolidation of the Chikou Span at $1400, near the upper limit of the Kumo. And in that case, we would materialize higher previous lows in an attempt to create a rebound that could neutralize the run to the bottom of the Prince of Cryptos since his last ATH in November 2021.
On the other hand, the breakout of $1400 would likely be a stop on the upside. Or conversely, the bears would raise midway. But from there to cry catastrophic, it would be necessary to push the $1200 to put the fears of new lows back on the carpet. As a result, we would converge on prices and a Chikou Span below the Kumo in both weekly and daily units.
In summary, one has the luxury of optimism given the recent chart signals in both weekly and daily units. However, let’s not try to declare victory too soon. Because until the price of Ethereum hits new highs – i.e. large resistances that would soon become supports – then the bears will stand guard.
Not only, the bulls must soon adjust to the significant thickness of the Kumo future in weekly units, which in turn would moderate the return of risk aversion on the prince of cryptocurrencies. But a nasty surprise from the FED regarding its monetary policy next week could potentially wipe out some of the gains across all risky classes.
And given that cryptocurrencies were the last to rise, a hard landing on the worst levels of the FTX affair could not be ruled out. What not to definitively bury the resumption of the race to the bottom of ETH since its last ATH in November 2021. With fears that courses don’t end up priced under $1000 against all expectations.
To keep your cryptocurrencies, nothing beats the discretion of a Ledger wallet. Nano S and Nano X offer security and ease of use. In fact, they are compatible with the vast majority of cryptocurrencies and networks. They are an absolutely essential alternative to all exchanges that offer to hold your assets for you. Remember, “Not your keys, not your coins” (commercial link)!