The prince of cryptos still feverish around the $1000 support! – While the way towards the $1400 resistance seemed open for Ethereum (ETH), the weekend and Monday sessions did not produce the result that many investors were clinging to. Therefore, the threat of a fall below the $1000 support is still relevant. With the fear of seeing the current uncertainties on the financial markets worsen again, if inflation continues to act up.
Technical analysis over the past few weeks shows a fragile stabilization with ETH prices trailing slightly above $1000. So much so that the bear run since its last ATH in November 2021 could experience two scenarios: relief through a technical rebound after numerous episodes of stress or the extension of the current momentum heralding a possible capitulation.
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Ethereum in weekly units – A fourth straight week above $1000
Although Ethereum prices have had the worst difficulty in unquestionably regaining their momentum, despite everything, they have just completed a fourth consecutive week beyond the $1000 support. What bring a slight bit of optimism in this bear run which takes root as the market context struggles to extricate itself from its ambient gloom.
And if we want to go in this direction, the gap between the prices of ETH and the Tenkan is rapidly closing in favor of the second having amplified its fall below the resistance of $1700. This would suggest that the downside pressure since the last failure below the $3400 resistance would begin to wear off. Thus, cryptocurrency investors would feel reassured to see a technical rebound, at least temporarily.
On the other hand, the price position of the prince of cryptos and the Chikou Span compared to the Kumo (Ichimoku cloud) remain worrying, despite the good performance on the $1000. Especially since they find themselves far from the lower limit of the future cloud, the Senkou Span A (SSA). Finally, the other point of concern would concern the weekly Kijun which sees its curve stabilizing close to the support of $2300. And the hypothesis that it could act as resistance in the same way as the $3400 during the first quarter, would make us fear the same fate.
After the invalidation of its double bottom under the resistance of $1250, Ethereum prices are going down. And for now, Monday’s candle closed on the daily Kijun, then today’s candle just opened at the same level of one of the Ichimoku curves. A break down would inevitably lead us towards the $1000 support. With the idea of affording a triple bottom in the event of a new surge or something still unthinkable at the end of last year, i.e. three-digit prices towards the $700 support.
However, The reprieve of the prince of cryptos around the $1000 support since June 13 has allowed prices and the Chikou Span to approach the Kumo. This would push in favor of the potential formation of the bullish chart pattern. Even better, we could get away with it, if ETH prices rebound from the Kijun and subsequently cross the Tenkan. From then on, they would keep all chances of breaking the resistance of $1250 to join that of $1400. In favor of certain circumstances, renewing contact around $1700 would not be excluded. This would coincide with a return of prices inside the cloud.
Although some form of Ethereum price stability is said to be emerging on highly momentous daily unit support, investors should continue to discount the end of the bear run since its last ATH in November 2021. If the $1000 remains in abeyance and then moves forward again, this would not worry the sellers. Because precisely, the true levels of reversal remain distant.
On the one hand, a remontada of anthology to return close to the descending line would be required. And on the other hand, its crossing would not even constitute an end in itself with regard to the trajectory of the future Kumo in weekly units. Hence the importance of being patient to hope that the bear run ends up running out of fuel. And in which case, it would be worth moving on in the absence of a clear improvement both graphically (especially in weekly units) and an easing of major risks.
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