Ethereum bears gain control, ETH price targets $2,500

Ethereum price collapses -12.2% but recovers roughly half of the loss.
Extremely bearish Ichimoku conditions persist, limiting upside pressure while maximizing further losses.
Bears target $2,500.

Ethereum price continues to follow all crypto and non-crypto markets in a broad risk-off sell-off. Ethereum bears, which targeted the $2,900 value area, succeeded and now focus on $2,500. In addition, significant bearish Ichimoku conditions point to continued moves south.

Ethereum price hits $2,900 value area, bears now target $2,500

Ethereum price successfully hit the $2,900 value area identified last week as a primary target for Ethereum bears. After a -12.2% drop following other risk-on markets, Ethereum has moved from a daily low of $2,924 to $3,117, reducing the daily loss from -12.2% to -6.3%. The daily low is lower than the September 7^th flash crash low.

The oscillators suggest prices will continue to drop. The Relative Strength Index is sloping lower and at an angle that will likely surpass the final oversold condition in a bull market (40). Additionally, the Optex Bands have yet to reach a lower extremity. Ethereum price, therefore, has little to it with the current oscillator values.

Within the Ichimoku system, one condition must be fulfilled for a clear bearish environment ahead. Bears must push Ethereum price below $3,087 and close at or below that level to put the Chikou Span below the candlesticks. Ideally, bears would push to precisely the $3,000 level to put the daily close inside the Cloud and the Chikou Span below the candlesticks.

ETH/USD Daily Ichimomku Chart

Bulls may be able to invalidate the current bearish scenario by pushing the Chikou Span above the candlesticks to close Ethereum price to at least $3,350. However, the upside potential will likely be limited as Ethereum will still face pressure against the Kijun-Sen at $3,500. Thus, bulls will ultimately need to close Ethereum above $3,990 before the beginning of October to eliminate any bearish outlook.

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