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Ethereum bears to pounce on ETH bulls, -15% drop in crosshairs

  • Ethereum price may come under attack from one final push by bears to swipe ETH lower. 
  • Key resistance zones ahead in the Ichimoku system provide profit-taking and shorting opportunities. 
  • Make or break zone for Ethereum is near. 

Ethereum price jumped +4.57% yesterday and is presently up nearly +3% today. The new weekly highs come as Ethereum hits some significant resistance levels in the Ichimoku system. Failure to cross and hold above these Ichimoku levels will likely create a -15% drop towards the $2,900 value area. 

Ethereum price may come under bear attack on any weakness at these levels

Ethereum price has made consistent moves higher with little resistance or selling pressure over the past three trading days. However, Ethereum is now at a price level where bears may come in to attempt a push lower. The two near-term resistance levels in the Ichimoku system are the Tenkan-Sen at $3,478.50 and the Kijun-Sen at $3,519.68. 

Another level bears will want to watch is the 55 value on the Relative Strenght Index. While the Relative Strenght Index remains in bull market conditions, a shift to a bear market reading could occur if 55 acts as a source of resistance, especially when Etheruem price is against the Tenkank-Sen and Kijun-Sen. 

ETH/USD Daily Chart

Bulls can easily take over and eliminate any near-term bearish pressure, though. The Chikou Span is well above the candlesticks and does not have resistance in front of it. However, to maintain a confirmed bullish outlook, Ethereum price needs to close above the Tenkan-Sen and Kijun-Sen. Bulls may want to wait for the Composite Index to cross above both of its averages and to confirm Ethereum has a daily close above $3,600 to confirm a likely continuation move higher.

Author

Jonathan Morgan

Jonathan Morgan

Independent Analyst

Jonathan has been working as an Independent future, forex, and cryptocurrency trader and analyst for 8 years. He also has been writing for the past 5 years.

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