• Ethereum closed below key support structure.
  • Confirmation of a bearish pattern is now being tested.
  • Upside potential is very limited as bears are increasingly likely to regain control.

Ethereum price action is now at the most bearish since December 13, 2021. If bears confirm the current breakout, sub $2,000 price levels are imminent.

Ethereum price faces final test before capitulation move to $1,800 begins

Ethereum price confirmed and Ideal Bearish Ichimoku Breakout on Friday with a close below the Ichimoku Cloud. This is the first time that bearish entry condition has occurred since December and only the third occurrence in two years.

Bears were initially unable to push ETH lower due to the shared support zone at $2,570 – the 61.8% Fibonacci retracement and the bottom trendline of a bear flag. The Fibonacci retracement is derived from the all-time high to the low of the strong bar from the July 2021 to November 2021 rally.

Sunday’s close then confirmed a breakout below the bear flag and the 61.8% Fibonacci retracement. During Monday’s intraday trading, bulls have unsuccessfully attempted to return Ethereum price inside the bear flag. If bears keep ETH out of the bear flag, that is likely the signal short-sellers are waiting for to jump in on another round of selling.

The initial target for bears is the 100% Fibonacci expansion at $1,825 – but sellers will likely get halted at the bottom of the weekly Ichimoku Cloud (no shown) at $2,300. The bottom of the weekly Ichimoku Cloud has been a primary support level for Ethereum price and has yet to break as support.

ETH/USD Daily Ichimoku Kinko Hyo Chart

Bullish prospects are very unlikely to occur, given these major bearish confirmation signals. The only way for bulls to invalidate any near-term bearish outlook is for an Ideal Bullish Ichimoku entry to occur – which would require a close at or above $3,170 or a 24% increase from today’s open.

 


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

Ripple proponent attorney slams Michael Saylor’s stand on Bitcoin as perfect money, XRP dips to $0.47

Ripple proponent attorney slams Michael Saylor’s stand on Bitcoin as perfect money, XRP dips to $0.47

Ripple proponent Bill Morgan slams Michael Saylor for promoting Bitcoin as perfect money. XRP Ledger AMM has crossed a milestone of 20 million XRP tokens in Total Value Locked.

More Ripple News

Bitcoin price stalls as BTC miners reserve dwindle; market watches for impact

Bitcoin price stalls as BTC miners reserve dwindle; market watches for impact

Bitcoin spot ETFs show continuous outflow from June 13 to June 21. BTC miners have also seen a decline in their reserves. Bitcoin price is trading inside a descending wedge, and a breakout above $64,600 signals a bullish move.

More Bitcoin News

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Week ahead: Bitcoin dips under $63,000, meme coins fade with steep correction in top five

Bitcoin dipped under $63,000 on Monday, lowering crypto market capitalization by over 3%, per CoinGecko data. BTC is in a state of decline, and news of VanEck’s Spot Bitcoin ETF launch in Australia failed to improve traders' sentiment. 

More Cryptocurrencies News

Pepe poised for 20% crash

Pepe poised for 20% crash

Pepe price breaks below the ascending trendline support on Sunday, suggesting  a bearish move. On-chain data suggests that PEPE’s active addresses are decreasing, signaling lower demand for the network.

More Pepe News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. 

Read full analysis

BTC

ETH

XRP