It’s panic on board on all cryptocurrencies. Seeing the supports break one after the other, a psychological stage in the current bear run is slowly taking hold. As good news fails to thwart the current uncertainties in financial markets, the belief of having bottomed out is seeing its probability melt like snow in the sun.
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It is not the current situation of Ethereum that will encourage people to believe in miracles. In effect, it has just broken two key supports in a very short time. And by cause and effect, its bear market triggered since its last ATH in November 2021 has suddenly accelerated. An anxiety-provoking atmosphere risk of seeing ETH prices slide below the symbolic $1000 mark.
Ethereum – A never-ending dark streak
Still entangled in its black series, since the last failure to date under the resistance of $3400, Ethereum is heading for an eleventh consecutive week in the red. And as a misfortune never comes alone, it is getting dangerously close to the $1000 support. Faced with this technical situation which continues to deteriorate, a second wave of sufficiently destructive decline is clearly putting pressure on cryptocurrency investors.
Although the RSI is in the oversold zone in weekly units, the unfavorable technical signals continue to accumulate. Firstly, the 30-week average (MM30 weekly) breaks through the resistance of $2800 after that of $3400 and confirms his Weinstein phase 4. And on the other, by successively breaking the supports of $1700 and $1400, ETH prices are moving away from the descending line and the bottom of its tidy or horizontal channel (orange rectangle).
In the event that Ethereum returns to contact the support of $1000, it is to be hoped that the buyers will defend this critical level. And, in this case, a technical rebound could take shape. But, otherwise, we risk revisiting triple-digit prices. Starting with the $700 support.
Ethereum – Precarious stability around $1000
After a series of daily bearish candles ended its mini tidyhovering around the $1700 support, Ethereum prices are resisting somehow on the $1000 support. Especially since Tuesday’s and Wednesday’s candles, respectively in the shape of a doji and a hammer, could indicate a lull in selling pressure.
While the former signals indecision between buyers and sellers, the latter usually appears as part of excessive bearish movement. As a reminder, a hammer is distinguished by a candle having a square shape (regardless of color) and a large low wick. And its confirmation requires one or two consecutive bullish candles to hope for a rebound. Even better, if the hammer is near a major support such as $1000, because it gains in reliability.
But at this moment, it seems that the practice does not follow the theory. Like what, the bear market in ETH prices weighs psychologically in the minds of investors. However, it is possible to observe a slight decline in daily units on the technical indicatorseven if it remains on a thread.
On the MACD side, an unconfirmed bullish divergence is setting in against lower Ethereum prices. As for the RSI, it languishes in the oversold zone since the breakout of the $1700 support. And, without foretelling anything of what might happen in the next sessions, there may be grain to grind to see a technical rebound. And, unlike the previous market point, the upside potential would be more interesting for traders to exploit.
ETH – From fragility to fragility
Whether there is a technical rebound or not, Ethereum is fully surfing in a bear market. And in the absence of leading catalysts, the gap between current prices and the weekly MM30 or the daily MM200 will not be easy to close, in order to glimpse better days. Not to mention the descending line and the various changes in polarity from support to resistance. The latter able to deter a large-scale protest from buyers.
At present, Ethereum is at the heart of a general panic. And it is to be expected that the sellers will persist in their operation of dismounted. This in order to reach the ultimate goal: capitulation. And as long as the unfavorable technical signals and the lackluster market backdrop hold, the 1000$ support is likely to get carried away. As was the case for the $1700 and the $1400. And if so, we also risk seeing Bitcoin sink deeper, below the $20,000 area.
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