If it seems to have regained a so-called stability since the end of last January, Ethereum (ETH) dawdles around $2800. One hit is resistance, one hit is support. This hesitation speaks volumes about the uncertainty of the prince of cryptos trend in the medium to long term. Hence the interest of not letting you embark hastily in one direction or the other.
It is thus not because the prince of cryptos seems to be on the way to crossing a key level that this time it is surely the right one. At the time of writing, and given the current backdrop in the financial markets, technical analysis for ETH urges us to take it easy as we await signal validation over the coming weeks.
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Favorable polarity shift of $2800?
Ethereum has experienced a great week with a candle that closed above 2800$. If the next one were to be of the same caliber, we would witness a favorable polarity change regarding $2800, i.e. this level would move from resistance to support. However, the potential validation of this positive signal would not upset its uncertain trend of the past few weeks overnight.
Although ETH prices are currently breaking up the Tenkan in addition to $2800, they remain well anchored inside the Kumo (Ichimoku cloud). In the same price movements, the Chikou Span persists to hold above the cloud of the Japanese indicator. This means that the heavy fall of Ethereum since its last ATH in November 2021 has the effect of neutralizing the bullish cycle that has started since 2019.
Let’s imagine that the $2800 becomes history, the operation reassembled would get complicated quickly. Starting with the upper limit of the Kumo, the Senkou Span A (SSA). Then, the crossing of this first obstacle would lead us towards the resistance around $3400 which is not far from the Kijun in weekly units. It would risk being quite a thorn to remove from one’s foot.
Output of the symmetrical triangle from the top?
During the previous market update on Ethereum, I mentioned the formation of a symmetrical triangle in daily units. It is clear that one should not automatically rely on historical statistics, to the delight of cryptocurrency investors. Indeed, it finally happens that the prices of ETH timidly extricate themselves from the chartist figure from the top with the key, the crossing of $2800.
In the days to come, there will be high chances that the prince of cryptos will end up above the Kumo unless there is a major drop in magnitude. What would end a long spell on the wrong side of the fence against the Kumo. However, the Chikou Span would still remain inside the cloud. The reassembled heading towards resistance around $3400 would release the ultimate Ichimoku curve from this yellow-colored hurdle.
If we respect the theoretical objective of the symmetrical triangle (height of the triangle at the second point of contact) with regard to the current price movements, Ethereum would project beyond $3400. However, we will remain on our guard given the current risks in the financial markets.
In summary, we will be watching the current exit from the symmetric triangle in daily units. History of knowing if the Ethereum will manage to chain a second consecutive week on the rise and that the 2800$ would not once again be put to the test in the short term.
Between the lines – and that only engages me – getting back around $3400 in daily units does not have the same range as in weekly units. On this time frame, its proximity to the Kumo and the fact that the Chikou Span, although above the Kumo, is having difficulty crossing the previous prices of ETH, would not encourage a glimpse of a new bull. run.
The risk being that the resistance around $3400 becomes an increasingly low high point likely to trigger a rebound from the dead cat. By snowball effect, a phase of panic or capitulation (see both) would drag the prince of cryptos to new lows, unimaginable before.
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