Despite its bearish momentum in recent weeks, Ethereum (ETH) repeatedly showed foolproof resilience on the support around $ 4,000 as evidenced by the previous market point. But by dint of being on a razor’s edge, the prince of cryptos has ceded the dyke below this key and symbolic level. While this requires confirmation at the end of this week, ETH’s technical analysis tells us that its bull run that has been in place since last summer is on the verge of being reversed. What give headaches to supporters of cryptocurrencies.
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The bullish channel under tension
The series has not been brilliant since its last ATH on November 10, around $ 4,900. Ethereum remains on three bearish weeks out of the last four. And the start of this week is not off to a good start with a Tenkan, the average high and low price point of the last 9 sessions, which has been pushed in. In the middle of the session across the Atlantic, it is currently below $ 4000 and its downtrend channel. Things could still change this Wednesday at the FED meeting.
This is why it is too early to assert a major trend change. The different components of Ichimoku do not exude concern at this stage. First, the fact that the Chikou Span, the curve which reproduces the same variations as ETH with 26 sessions late, either above the Kumo (Ichimoku cloud), the bullish channel and Ethereum prices respectively, should encourage investors not to make a premature conclusion in favor of a bear run.
Secondly, the Kijun, the average price of the average points over the last 26 sessions, which flattened, could block the current bearish momentum as support. Moreover, it is close to another key support around $ 3400. All the more reason to watch her in the coming weeks.
The threat becomes clearer in the short term
The daily chart suggests that we are at a crossroads. The current bull run is already neutralized by ETH prices inside the Kumo and a Chikou Span drowned under its prices. The big bearish candle on Monday validates a close below the bullish channel. If the next sessions ended below $ 4000, we might as well spend from neutralization to a first questioning with the climax of ETH prices under the Kumo targeting 3400 dollars.
If this pessimistic scenario were to occur, the Chikou Span would break down the lower bound of the bullish channel and be slightly below the Kumo. At the same time in weekly units, we would curiously observe a status quo on its respective positions in relation to the Kumo, bullish channel and the prices of Ethereum. Like what with the Ichimoku, what is negative in daily units is not necessarily negative for higher time units.
In short, the hopes raised during the previous market point were extinguished in the space of a few hours during the Monday session. Even though the $ 4,000 has drifted away, the week has only just begun. A lot can happen on Ethereum like what happened in the last minutes of the Formula 1 Grand Prix in Abu Dhabi to designate the world champion.
Cryptocurrency supporters would not be against the idea of a turnaround at the last FED meeting of the year. Although the inflation target above 2% and full employment are met for a monetary tightening, President Jerome Powell could be accommodating on the forecasts of rate hikes due to the high level of state indebtedness United and the private sphere.
This means that monetary policy would remain accommodative with negative real rates. Thus, risky asset classes could still appreciate in the coming quarters, and first and foremost cryptocurrencies which reflect the appetite for risk in the financial markets.
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