• Ethereum price continues to struggle below the Ichimoku Cloud.
  • A Kumo Twist within the Ichimoku Kinko Hyo system showed a bottom is likely in.
  • A large bull flag pattern shows uptrend continuation highly probable.

Ethereum price continues to battle below the Cloud and has displayed several primary bearish breakout trade setups – but bears are unwilling or unable to push ETH lower. However, several bear traps have been formed and could be the primer necessary to launch Ethereum higher.

Ethereum price shows bullish continuation pattern and trend continuity ahead

Ethereum price remains inside a large and broad bullish continuation pattern known as a bull flag (green channel). December 2021 showed sellers made multiple attempts to close Ethereum below the bull flag, generating some fear among bulls. However, buyers were able to return Ethereum into the bull flag.

Near-term resistance for Ethereum price is the Tenkan-Sen at $3,850. Above that, a confluence zone at $4,000 exists with the Kijun-Sen and 2021 Volume Point Of Control. Therefore, for Ethereum to resume the uptrend that halted in the middle of November 2021, Ethereum needs to close at or slightly above $4,200.

A close at $4,200 would position the daily candlestick above the top of the Cloud (Senkou Span B) while also positioning the Chikou Span above the candlesticks and in open space – a condition where the Chikou Span won’t intercept the body of any candlesticks over the next five to ten periods. More conservative traders may wait to see what happens when Ethereum price returns to $4,500.

ETH/USDT Daily Ichimoku Chart

$4,500 is a solid psychological number, but it is also where the 61.8% Fibonacci extension exists and is just above the last significant swing high from December 9 at $4,450. An entry at or above $4,500 would fulfill the basic entry rules on the breakout above a bull flag.

Any long bias for Ethereum price would probably be invalidated if ETH drops below the bull flag and has a daily close below $3,600. That would likely trigger a fast drive south towards the $3,200 value area.

 


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

Dogwifhat price pumps 5% ahead of possible Coinbase effect

Dogwifhat price pumps 5% ahead of possible Coinbase effect

Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.

More Dogwifhat News

Runes likely to have massive support after BRC-20 and Ordinals frenzy

Runes likely to have massive support after BRC-20 and Ordinals frenzy

PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.

More Cryptocurrencies News

Ethereum shows firm support at key level as its correlation with US indices increase

Ethereum shows firm support at key level as its correlation with US indices increase

Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.

More Ethereum News

Mango Market attacker convicted of fraud and market manipulation

Mango Market attacker convicted of fraud and market manipulation

Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP