• Ethereum price is below two critical support levels, likely moving to its final Ichimoku support.
  • Oscillator conditions continue to favor a swing low developing, continuing the current upswing.
  • $2,700 price range is now in focus as the final daily support level.

Ethereum price action has fallen below the Tenkan-Sen at $3,000 and the 50% Fibonacci retracement at $2,900. Participation and momentum have dropped significantly on both sides of the market, but the overall near-term trend is lower.

Ethereum price action continues its slow slide south toward its final support zone at $2,700

Ethereum price closed below the 50% Fibonacci retracement at $2,900 on Sunday, but follow-through selling pressure has been almost nil despite a slow drip lower. A slow bleeding and continued move south is expected until bulls spontaneously re-enter to support ETH or until Ethereum hits the Kijun-Sen at $2,700.

The inverse head-and-shoulders pattern identified on February 12, along with the bullish divergence in Ethereum’s oscillators, all remain in play and structurally unchanged. Ethereum price could dip to the 61.8% Fibonacci retracement at $2,500 before finding a swing low, but it would threaten to cancel the hidden bullish divergence present between the candlestick chart and both, the Composite Index and Optex Bands.

The hidden bullish divergence became more extended, enhancing the strength and likelihood of a swing low developing very soon. However, if bulls establish a new swing low in the $2,500 to $2,700 price range, they still need to contend with a massive cluster of resistance in the $3,150 to $3,300 value area. The 2022 Volume Point Of Control, top of the Ichimoku Cloud (Senkou Span B), 38.2% Fibonacci retracement, and lower trendline of a prior bear flag exist within that $3,150 to $3,300 price range.

ETH/USD Daily Ichimoku Kinko Hyo Chart

A successful breakout for Ethereum price above $3,300 would quickly generate a move to retest $4,000.

Bulls and bears will want to watch for any daily close below the 61.8% Fibonacci retracement at 2,500 as it would signal a highly probable sell-off to retest the 2022 low near $2,100.

 


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Digital asset inflows reach record high year-to-date

Digital asset inflows reach record high year-to-date

Digital asset investment inflows saw a three-week consecutive rise, totaling $1.05 billion. Cumulative flows have hit an all-time high of $14.9 billion for the year. The majority of inflows come from US Bitcoin ETFs at $1.01 billion.

More Cryptocurrencies News

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Bitcoin long-term holders begin re-accumulation after Semler Scientific and Mt Gox make major whale moves

Semler Scientific takes a page from MicroStrategy's playbook with $40 million BTC investment. Mt Gox has yet to begin repaying users despite $9.6 billion BTC transfers across several addresses.

More Bitcoin News

Ethereum may continue outperforming Bitcoin as 'programmable money' may be ETH's new slogan

Ethereum may continue outperforming Bitcoin as 'programmable money' may be ETH's new slogan

Ethereum (ETH) followed a sideways trend on Tuesday as the crypto community seems to favor the term 'programmable money' as ETH's one-liner. Meanwhile, whales have continued accumulating ETH despite profiting from the recent price spike.

More Ethereum News

Pepe sell signal hints at 20% crash before bulls come back Premium

Pepe sell signal hints at 20% crash before bulls come back

Pepe (PEPE) price has shown resilience in the past two weeks, with the most recent rally nearly doubling the meme coin’s market value. However, due to the nature of the recent impulsive move, investors can expect a short-term correction, which could be an opportunity for patient and long-term buyers.

More Pepe News

Bitcoin: BTC struggles, but $80K is at striking distance Premium

Bitcoin: BTC struggles, but $80K is at striking distance

Bitcoin (BTC) price is in a good position to resume the bull rally despite the recent struggle. Optimism will restart if BTC overcomes a critical hurdle and flips it into a foothold. In such a case, the pioneer crypto will be slated to push to a new all-time high (ATH). 

Read full analysis

BTC

ETH

XRP