• Ethereum price continues to trudge higher, but some selling pressure enters the market. 
  • Seven-week Gann ‘Death Zone’ time cycle complete, a corrective move likely. 
  • The downside risk is likely to be limited.
Ethereum price has now completed seven consecutive weeks of the weekly candlesticks closing above their open. In other words, seven straight weeks of green/white weekly candlesticks. That is a record for Ethereum; the previous consecutive bullish weekly candlestick record close was five – between the weeks of May 19th 2017, and June 16th 2017.

Ethereum price could drop 20% as Gann and Ichimoku warn of a big dip coming soon

Ethereum price is primed for a violent and swift mean reversion trade. This is due to a critical time cycle in Gann analysis known as the ‘Death Cycle.’ Gann warned that any instrument trending at a steep angle for seven weeks (forty-nine to fifty-two days) is at risk of a near-immediate corrective move or trend change.
 
Complimenting Gann’s time cycle analysis is the Ichimoku Kinko Hyo system’s confirmatory price behavior. Ethereum price has extensive gaps between the bodies of the weekly candlesticks and the Tenkan-Sen. Gaps between candlestick bodies and the Tenkan-Sen do not last long and often resolve in roughly four to six periods. 
 
The projected retracement is the $4,000 value area near the weekly Tenkan-Sen, but Ethereum price could travel lower to the Kijun-Sen at $3,300. While doubtful to occur, if Ethereum faces a capitulation move south, its final support on the weekly chart is at $2,300, where Senkou Span B and the 38.2% Fibonacci retracement reside.
 
ETH/USD Weekly Ichimoku Chart
 
An invalidation of the projected retracement south would occur if Ethereum were to close at a new all-time high.  

 

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

Binance Coin Price Prediction: CZ's Crypto Takeover

Binance Coin Price Prediction: CZ's Crypto Takeover

Binance CEO Changpeng Zhao (CZ) plans to hire 2,000 more Binance employees. 14 million tokens have been locked away and burned this summer. A break above $336 could be the catalyst to induce an additional 40-50% rally.

More Binance Coin news

Dogecoin: A $0.02 DOGE by 2023

Dogecoin: A $0.02 DOGE by 2023

Dogecoin price prediction shows reasons to be concerned. Analysts have been eyeing the notorious dog coin throughout the summer as the DOGE price fell into considerably discounted price territory at $0.050. Invalidation of the downtrend will result from a breach above $0.112.

More Dogecoin News

Shiba Inu on fire, another price rally around the corner?

Shiba Inu on fire, another price rally around the corner?

Shiba Inu, the second-largest meme coin, is closer to its breakout according to analysts. While declining trade volume and inflows to SHIB are typical of a bearish trend reversal, analysts remain bullish on SHIB. Analysts have predicted a recovery in Shiba Inu.

More Shiba Inu news

Is this the end of the road for Avalanche price?

Is this the end of the road for Avalanche price?

Avalanche price grinds to a halt, breaking a two-month trend within an ascending parallel channel. Despite breaking above $30.00, AVAX failed to close the gap to $40.00. Initially, higher support at $28.00 mitigated the bears’ influence on the price.

More Avalanche 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