New lows of the year in sight for the prince of cryptos? – Since the bankruptcy of FTX, bad surprises have followed on the crypto planet. To the point that we fear harmful repercussions, even if the damage is already done. And to drive the point home, the price of Ethereum (ETH) is now at the heart of the turmoil. Indeed, we will see when it is hot that it is on the verge of breaking. It makes you wonder if the prince of cryptos will not soon imitate Bitcoin through new lows of the year.
The latest technical analyzes have pointed to signals, which themselves would not delight the bulls. With the feeling that ETH’s bear run since its last ATH in November 2021 could be accentuated by returning to the standards of that of 2018 in terms of percentage decline. Although we are not there yet, the scenario of a new wave of correction continues to swell. Especially since the engines that had made it possible to temporarily straighten the prince of cryptos may no longer be enough.
In the face of a crisis of confidence that is hitting the entire crypto ecosystem hard, let’s take a close look at what the weekly and daily Ethereum price charts would offer us. But first, let’s talk about his balance of power against the king of cryptos.
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ETH/BTC – Ethereum caught up in the crypto bear cycle
Since mid-June, Ethereum has been getting off lightly against Bitcoin given the surge in the ETH/BTC ratio. And with hindsight, it is not surprising that the first had this ability to come back quickly in contact with certain resistances. Not to mention that we have not observed any new ATLs at the time of writing.
But since news broke of FTX’s collapse, we feel like the prince of cryptos would risk being caught up in the harsh reality of the crypto bear cycle. During which Satoshi Nakomoto’s digital currency could have the last word as a market leader.
In the event that ETH/BTC breaks through the support at 0.066, we will be back to where we started from mid-June last year towards 0.055. With this time a more struggling Ethereum than Bitcoin.
Ethereum in weekly units – Towards a fourth consecutive week of decline?
Remember in mid-August last that Ethereum had come close to $2000. From now on, he could chain a series of four consecutive weeks of decline since prices faltered once again below the resistance of $1700. Especially as we are getting closer to the support of $1000, not far from the lows of the year. And not to do the business of the bulls, the price situation of the prince of cryptos compared to the various curves of the Ichimoku could deteriorate.
First, the future Kumo sees its thickness increase in such a way that the prospects for the start of a favorable trend reversal would become more complicated well into 2023. Second, the onset of bearish synchronization between the Tenkan and the Kijun would potentially signal that the resumption of the bear run would only be a matter of time. And lately, you won’t be surprised to learn that the status quo of ETH and Chikou Span prices under the Kumo (cloud) has persisted for many months. And I fear a deep stalemate on this subject as long as capital resistances will not be overcome.
In any case, a return of Ethereum near the $1000 support would be in sight. And if that precise moment takes place quickly, serious things could begin. As for the bulls who took a hit behind the head, prices would have to extricate themselves beyond the resistance of $1400 to get out of this bad patch. But given the scale of the devastation of FTX’s bankruptcy, that scenario is unrealistic at this point.
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Ethereum in daily units – $1000 within reach?
Despite the desire to give you good news, Ethereum has seen its momentum degrade in daily units. On the one hand, the prices and the Chikou Span are below the Kumo. On the other hand, the Tenkan rejects the prices where the real troubles of FTX had started, more precisely on November 9th. And as nothing goes, the support at $1200 has given way definitively.
The average of the three unfavorable signals means that the downward movement could resume even more strongly, to the chagrin of the bulls. In this hypothesis, $1000 or the lows of the year would be within reach in favor of the bears. With the objective that the future new wave of correction would potentially spread towards the support of $700 or why not that of $450.
Conversely, let’s not rule out the possibility of a throwback to $1000 or an immediate rebound without rallying to the lows of the year. But on the other hand, the bulls will have to free themselves from the Kumo and the $1400 to consider a beginning of an exit from the crisis. What is not won in advance.
Although a lot can happen one way or the other, everything seems to converge towards a rapprochement of the Ethereum towards $1000. Not only do we see an unfavorable alignment of the prices and the Chikou Span compared to the Kumo, whether in weekly or daily units. But the prince of cryptos would be on the verge of breaking to the point of preparing a possible deluge.
The bulls and bears would carefully scrutinize the $1000. Because precisely, this level, both important and symbolic, would seal the fate of Ethereum in the coming months. The breakout would result in a bear run that would enter phases that could undermine investor sentiment. On the other hand, a throwback would serve to repel the attacks of the bears at first, failing to build the milestones of a favorable trend reversal. And as such, it would be a miracle given the recent news on the crypto planet.
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