- Ethereum price halted against a combination of solid Fibonacci and Ichimoku resistances.
- Sellers are likely to regain control and push Ethereum to new two-month lows.
- Oscillators support lower prices soon.
Ethereum price faces the same assault as the broader market with news that China is officially made all cryptocurrency transactions illegal. The market was positioned perfectly for bearish news to give sellers more control.
Ethereum price fails to hold above $3,000
Ethereum price looked poised to continue its massive bull-run when it broke above the Cloud and closed within the $3,100 value area. However, buyers were unable to unwilling to push Ethereum any higher. One look at the series of resistance zone near the $3,200 to $3,300 levels would give any trader or investor pause to buy:
- Daily Tenkan-Sen ($3,170)
- 50% Fibonacci retracement (3,238)
- 61.8% Fibonacci expansion ($3,182)
- Daily Kijun-Sen ($3,340)
- 61.8% Fibonacci retracement ($3,392)
- High volume node ($3,320)
As a result of the failed breakout, sellers have regained control and look to push Ethereum price below the next support level at $2,500 to $2,200. The Relative Strength Index shows a bear flag with failed support against the last oversold level in a bull market (40). The Optex bands have curled south again and will probably revisit the lower extreme oversold – adding to near-term selling pressure.
ETH/USD Daily Ichimoku Chart
Bulls can invalidate the near-term selling pressure – but the limitations are time-based. An Ethereum price close at $3,600 would fulfill all buy one of the necessary conditions for an Ideal Bullish Ichimoku Breakout setup. The one condition lacking is the Chikou Span in ‘open space.’ To be in ‘open space,’ the Chikou Span needs to be above the candlesticks, and it must be free from intercepting any candlesticks in the next five to ten periods.
For the ‘open space’ condition to be accurate, Ethereum price needs to close at $4,000, or buyers will have to wait until October 4th when the threshold to close in ‘open space’ returns to the $3,600 value area.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.