Ethereum price set to test $2,250 before ETH moves even lower

Ethereum price displays some of the most bearish price action observed since the Covid crash in 2020. Unless bulls step in to support price, a repeat of the 2018 bear market may be just beginning.

Ethereum price positioned for a massive collapse in value

Ethereum price action, from an Ichimoku perspective, is displaying one of the single most bearish short setups in the Ichimoku Kinko Hyo System. That setup is known as the Ideal Bearish Ichimoku Breakout. Only twice in Ethereum’s history has this setup appeared.

The first Ideal Bearish Ichimoku Breakout occurred the week of June 25, 2018, resulting in an 82% drop to $80 over 162 days. The second occurrence was the week of March 9, 2020, when Ethereum price lost nearly 60% over a two-week period when it returned to $90.

Unless something changes before the close of the weekly candlestick, Ethereum price will confirm an Ideal Bearish Ichimoku Breakout. If that bearish scenario plays out, then the first major price zone that bears will likely face buyers is the confluence zone of the 100% Fibonacci expansion at $1,600 and the 2021 Volume Point of Control at $1,700.

If bulls want any reprieve from the likely selling pressure, they may have to wait. There is little evidence in the oscillators or in the price chart to suggest that any meaningful rally would occur. Ethereum price is at the mercy of the broader risk-on market, which unfortunately has shifted to risk-off.