The prince of cryptos saves the $1000, but for how long? – After the recent swings of the past few weeks, we might expect to see Ethereum (ETH) languishing below triple-digit prices, not seen since early January 2021. Fortunately, the strength on Wall Street over the past week has allowed the prince of cryptos to take a perhaps legitimate pause in his bear run since his last ATH in November 2021.
In the event that the current week were to be of the same caliber as the previous one, ETH prices would feel their wings rising as they reconnect with certain resistances that were previously former supports. Without calling into question its obvious bear run, the technical rebound so hoped for by cryptocurrency investors would gain in intensity under certain conditions.
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Ethereum in Weekly Units – Closing the Price Gap with the Tenkan in Sight?
After a black series of 11 consecutive weeks of decline following its last failure below the resistance of $3400, Ethereum is painfully healing its wounds. Proof, the last two bullish weekly candles (including this week’s) even fail to erase the one that broke the $1400 support. Until proven otherwise, this denotes a lack of appetite for risk. Investors lack visibility in relation to the gloomy context on the financial markets.
On the other hand, the same questions remain about the price position of ETH and Chikou Span against Kumo (Ichimoku cloud) since the week of May 9th. Especially since their respective distances to return to contact remain substantial. Which means we are witnessing a deep stalemate in its bear run like the previous one in 2018.
If even if it’s hard to admit, let’s admit that the weekly technical analysis at this point seems to indicate that we are not out of the inn. But in the short term, the price gap between the prince of cryptos and the Tenkan deserves to be filled. Generally in the specifics of the Japanese technical indicator, it symbolizes that the bearish movement is relatively excessive.
In the current case, the potential of the technical rebound if it were to take place, would not leave us indifferent. Because from the strategic support of $1000, Ethereum would jump about 70%, very close to the resistance of $1700. However, this remains relative compared to its endless descent from $3400 until a stealthy foray below $1000. Hence my insistence on the fundamental character of the bear run since its last ATH in November 2021.
Ethereum in Daily Units – Halfway to $1400
Before putting the cart before the horse on a technical rebound towards $1700, let’s take a look at the daily chart. And we have to admit that we are halfway to the resistance of $1400. On the other hand, Ethereum prices below the Kumo, seem to have lost momentum since the day before yesterday and are between the Tenkan and the Kijun. With the risk of a backlash towards the $1000 support.
In the event that prices manage to move away beyond $1000, we could push a sigh of relief with the winning back of $1,400. And insofar as it turns out to be a very earlier resistance given the chart evolution, we dare to suggest that this resistance could be shattered if the technical rebound initiated since June 19 continues. However, the price situation of ETH and Chikou Span against Kumo would still remain tentative despite this recovery-like scenario.
In summary, the slight jump of Ethereum around the $1000 support is not enough in the evening to upset the sellers. Because precisely, the pillars of the current bear run, could weigh in the balance like the descending line since its last ATH in November 2021 and the worrying trajectory of the future Kumo on the weekly chart.
Although a technical rebound could take shape towards the resistances mentioned during this article, my fear is that it would aim to put the panic phase on hold since the breakout down $2300. Especially since an easing of the current uncertainties on the financial markets would have only limited power.
By selling off part of their profits, sellers would accumulate new ammunition to prepare for a third wave of declines. In which case, the terminal phase of the bear run in the name of the ultimate capitulation, would await the departure of the starter at the appropriate time. Therefore, the prince of cryptos could sound the death knell for $1000. And at the same time, three-digit prices would loom, starting with the $700 support.
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