• 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.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead. 

More Bitcoin News
GIGA investor loses $6M to phishing scam via fake Zoom link

GIGA investor loses $6M to phishing scam via fake Zoom link

On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.

More Cryptocurrencies News
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.

More Cryptocurrencies News
BNB: Bullish technical pattern validated, eyes all-time high

BNB: Bullish technical pattern validated, eyes all-time high

Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.

More Binance News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

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.

Read More

BTC

ETH

XRP