Jonathan Morgan
Independent Analyst
- Ethereum Price Prediction: ETH targets $2500, will underperform Bitcoin in a sell-off
- Ethereum price continues to slide further south and faces its last Ichimoku support level. The $2,900 value area is the last support zone before a mini-flash crash would see Ethereum flush towards $2,500.
- Ethereum price must hold above Senkou Span B or face a -14% drop
Ethereum price sits on a precipice that it must hold for the next five days or it is likely to crash towards a new 30-day low.
Ethereum price holds on to final Ichimoku support at Senkou Span B
Ethereum price has one of the most looked-for-bearish Ichimoku setups developing on its daily chart: the Ideal Bearish Ichimoku Breakout. The conditions for this Ichimoku setup are:
- Chikou Span below the Cloud.
- Tenkan-Sen below the Kijun-Sen.
- Future Span A below Future Span B.
- Price below the Cloud.
All conditions save one is present on the Ethereum price chart – price below the Cloud. Buyers have persistently defended the $2,900 - $3,000 level for the past eight trading days. However, there are signs that $2,900 will soon fail as support. The final support level in the Ichimoku Kinko Hyo system is at $2,900, with zero remaining supportive Ichimoku levels until the Chikou Span intercepts Senkou Span B at $2,500.
The oscillators support a relatively quick move from $2,900 to $2,500. The Relative Strength Index has developed a bear flag with a breakout directly below the final oversold condition in a bull market (40). Likewise, the Composite Index also has a bear flag formation. The Optex Bands is the only oscillator with some possibility of support coming in, but it could still move lower as it is not yet in the lower extremes. Because of these oscillator conditions and the lack of support below $2,900, Ethereum price is likely to underperform Bitcoin in any upcoming sell-off.
ETH/USD Daily Ichimoku Chart
To invalidate this current bearish setup, buyers will need to defend the $2,900 level. If Ethereum price can maintain $2,900 until October 3rd, the threshold bulls need to target to convert Ethereum into a new bullish expansion phase drops from a daily close at $4,000 to a close of $3,500.
Like this article? Help us with some feedback by answering this survey:
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
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.