• Ethereum price faces low trading volume and single-direction trading during the Saturday trade session.
  • First Ichimoku support level currently tested.
  • Upcoming Kumo Twist could trigger renewed buying pressure.

Ethereum price action is relatively unchanged from Friday. The slow and deliberate march south continues. Buyers who are mostly vacant may be waiting for a deeper discount before re-entering the market.

Ethereum price pulling back to $4,000 would be a good thing

Ethereum price is currently on its third consecutive down day. This move comes right after Ethereum made a new all-time high on November 3rd. Ethereum may likely make a push to the Kijun-Sen at the $4,000 value are this weekend, creating the first test of that level since it broke above it back on October 1st. Given the nature of how weekend price action historically performs, it would be an expected move for Ethereum to move lower.

The oscillators on the daily chart support a push south, too. The Optex Bands and the Relative Strength Index show a slight curve lower, but nothing as extreme as the Composite Index. The Composite Index has a very steep hook, nearly vertical at its current angle. Given that the Composite Index often leads the Relative Strength Index and the Optex Bands, the extreme of its slope hints at a very high probability of a deeper push south. But that may not be a bad thing for Ethereum price.

Since reaching new all-time highs near the $4,500 value area, buyers have generated little interest. A pullback is likely required for interest to return to the buy-side. And from a long-term bullish perspective, a pullback sooner rather than later would be necessary to prevent an even deeper corrective move. A phenomenon within the Ichimoku system known as a Kumo Twist (when Senkou Span A crosses above Senkou Span B) can often presage when a turn in a market occurs. The next Kumo Twist occurs on November 9th. If Ethereum continued to rally higher on that date, a corrective move below $4,000 would likely occur.

ETH/USD Daily Ichimoku Chart

Instead, if Ethereum pulls back down to the Kijun-Sen and can remain at that $4,000 around November 9th, a minor swing low will have developed near the Kumo Twist, giving Ethereum the time cycle and price levels needed to trigger another leg higher.

 

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Watch out for Ethereum price as technical indicators point to dip below $1,000

Watch out for Ethereum price as technical indicators point to dip below $1,000

Ethereum (ETH) price is revealing a not-that bright picture for bulls this week, both from a technical perspective and because of ballooning tail risks. As bulls could not manage a close above a crucial technical hurdle, price action slipped further to the downside and moved away from the essential historic barrier. 

More Ethereum News

As NATO troops double, so do the bears' army in XRP

As NATO troops double, so do the bears' army in XRP

Ripple (XRP) price is returning with a hangover after a very short-lived party in which it rallied from $0.3043 to $0.3710, and booked 21% gains. Although bulls temporarily pushed the price above $0.3710, it turned out to be a false breakout, and eventually closed the day below, catching a lot of bulls in a bull trap in the process.

More Ripple News

Why you should approach Bitcoin price with caution

Why you should approach Bitcoin price with caution

A brief technical and on-chain analysis on Bitcoin price. Here, FXStreet's analysts evaluate where BTC could be heading next.

More Bitcoin News

Why this move from Shiba Inu price could catch investors off guard?

Why this move from Shiba Inu price could catch investors off guard?

Shiba Inu price prepares for a quick retracement after nearly a week of recovery bounce. While this run-up was impressive, things are likely going to go slow for SHIB as investors continue to book profits.

More Shiba Inu News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP