• Ethereum price remains inside the Cloud and finds support.
  • Threats of near-term bearish price action dwindling.
  • Bullish breakout opportunities are developing.

Ethereum price confirmed a primary confluence zone of support near the $3,800 value area. Holding this zone was necessary to prevent a collapse in prices. However, Ethereum must continue to drive higher to stave off any near-term bearish sentiment.

Ethereum price hints at a breakout above its bull flag

Ethereum price has two primary resistance levels ahead of it that are currently preventing further upside momentum. The Tenkan-Sen at $4,050 and the Kijun-Sen at $4,100 are the two levels that Ethereum must break and hold above. Doing so would create an aggressive early buy opportunity.

The hypothetical buy opportunity is a buy stop order at $4,125, a stop loss at $3,800, with a profit target at $5,435. The entry is only valid if the daily close is at or slightly above the $4,125 price level. While it is often not a good idea to take trades when an instrument is inside the Cloud (it is expressly warned against in the Ichimoku Kinko Hyo system), this current setup is a rare exception.

The exception is based on the conditions of the oscillators. The Relative Strength Index has maintained a tight congestion zone between the two oversold levels in a bull market, 40 and 50. Most importantly, however, is the Composite Index. The Composite Index has crossed above both of its moving averages simultaneously – while it has been in neutral territory.

The combination of the Relative Strength Index and Composite Index values indicates significant momentum behind Ethereum price if it can trigger its hypothetical bullish entry.

ETH/USD Daily Ichimoku Chart

The hypothetical long setup is invalidated if Ethereum price has a close below the Cloud.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Will the FOMC minutes make or break Bitcoin’s uptrend?

Will the FOMC minutes make or break Bitcoin’s uptrend?

Ahead of the FOMC minutes release Bitcoin withdrawal from exchanges continued. Proponents expect the market to react to signs Fed members will continue with more aggressive interest rate hikes, increasing the pressure on Bitcoin price. 

More Bitcoin News

Why Cardano price action could see a 23% upswing soon

Why Cardano price action could see a 23% upswing soon

Cardano (ADA) price action is puzzling as, on the one hand, a continuation of the summer rally is still very much granted, but unfortunately, the recent pullback has not made it.

More Cardano News

Which Bullish setup is in play to trade ETC price action?

Which Bullish setup is in play to trade ETC price action?

Ethereum Classic (ETC) is trading inside a bullish right-angle triangle that forecasts  a breakout above $48.33 and a target at $52.44, with the monthly R1 resistance level in the middle as a pivotal point for some profit taking.

More Ethereum Classic News

Ethereum price could drop to $1,500 if bulls do not defend this level

Ethereum price could drop to $1,500 if bulls do not defend this level

Ethereum price shows a lack of buying pressure, which has led to a range formation. This development could tilt in bears’ favor if a certain support level is breached. 

More Ethereum News

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin: If bulls lose control here, BTC could revisit $21,000

Bitcoin price shows an interesting setup that could reveal its next move. On closer inspection,  its technicals support a bearish outlook for the leading crypto.  

Read full analysis

BTC

ETH

XRP