- Ethereum price is currently below two critical patterns, indicating an imminent sell-off.
- The $2,500 value area is the last support structure before ETH revisits and exceeds the 2022 lows.
- Unless bulls generate a surprise buying spree, another 30% drop is likely to occur.
Ethereum price is trading against its final support level at $2,500. The level is below the new 2022 Volume Point of Control and below a bearish continuation pattern. A huge sell-off looks very likely to occur at any moment.
Ethereum price hangs by a thread before capitulating down to $1,825
Ethereum price has two very bearish conditions on its daily Ichimoku chart. The first is the confirmation of an Ideal Bearish Ichimoku Breakout. The close on Friday confirmed this Ichimoku entry, and nothing has changed to invalidate it. The second bearish condition is the breakout below a bearish pennant.
Ethereum price is currently trading just a hair below the bottom trendline of a bearish pennant. Pennant patterns are triangles, in ETH’s case, a symmetrical triangle. To confirm a bearish breakout below the pennant, ETH needs to close at or below $2,500 – which is right where Ethereum was previously halted from further downside movement last week.
While current technicals show Ethereum price is clearly in bearish territory, some bullish signals have developed. The first is the continued support found at the 61.8% Fibonacci retracement in the $2,500 value area. Perhaps most important is shifting the 2022 Volume Point Of Control to $2,600, lending ETH some further support. However, Point Of Controls that move lower often signify broader weakness and can easily turn into strong future resistance.
ETH/USD Daily Ichimoku Kinko Hyo Chart
The projected stopping point on a confirmed breakout below the bearish pennant and the $2,500 support zone is the 100% Fibonacci expansion at $1,825.
If bulls want to deny any further bearish price action for Ethereum price, then they need to accomplish the extremely unlikely feat of closing above the Ichimoku Cloud at or above $3,165 – a feat not likely to occur anytime soon.
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.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.