Ethereum (ETH) – Tactical withdrawal but $ 1700 still in sight?

Is the cryptocurrency prince catching his breath to get on better? – Despite a flat weekend, Ethereum (ETH) had its best week since it failed below the $ 3400 resistance at the end of March. Should we rejoice? Yes, in the sense that the bear run since its last ATH in November 2021 marks a logical pause. No, because the technical rebound is currently based on catalysts that are unable to eradicate the current uncertainties in the financial markets.

Incidentally, ETH prices are retreating under strong resistance as of this writing. But this comes after a significant increase from the $ 1000 support. Should we see this as an intermediate step in seeking a technical rebound? This is what we will be looking for by analyzing the weekly and daily charts with the welcome help of the Ichimoku indicator.

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Ethereum in units per week – The $ 1700 pending?

Confirming the end of the last downward wave from the resistance at $ 3400, Ethereum chained a third consecutive week on the rise. Especially since it just crossed the resistance of $ 1400 and the weekly Tenkan afterwards. However, the bearish candle from the beginning of the week could alter the good momentum since mid-June.

And whether or not there is a timeout from the technical rebound, the price positioning of the prince of cryptocurrencies and the Chikou compared to the Kumo (Ichimoku cloud) would remain similar from the week of May 9th. This would show that investors should put the idea of ​​a bull run until further notice.

Furthermore, this small consolidation is not the result of chance. Indeed, it occurred near the resistance at $ 1700. At the same time, the Chikou Span is returning below one of the main levels of the last bull run. Either way, the retry above the $ 1700 resistance may be long overdue. And for the sake of ETH not returning to its shortcomings from its killing spring, prices shouldn’t fall below the $ 1200 support in daily units.

Ethereum in daily units: a triple throwback in sight?

Monday’s bearish candle unfortunately erased the performance of previous candles since July 19th. Thereby, Ethereum prices fell below the $ 1700 resistance. With the fear that they will push the Tenkan and why not the support of $ 1400. However, let’s not forget that a triple bottom has been validated upstream. Sellers cannot ignore this, at least in the short term.

Ethereum Price Analysis in Daily Units - July 26, 2022

Which could keep the chances of prolonging the cryptocurrency prince’s technical rebound. Not only, a return to the neck line or a triple bottom resistance around $ 1200 would be possible to consolidate the bullish chart pattern. But even better, prices would remain within the Kumo, not far from Senkou Span A (SSA). Combining these two potential technical signals, the slight pullback would be part of a process to better attack the $ 1700 resistance.

In case of crossing of the latter, this would drive ETH prices towards the $ 2300 resistance, which in turn is close to the descending line. As for the Chikou Span, it would simultaneously return within the Kumo. And despite a dramatic jump that could rise 130% from the $ 1000 support, I’m afraid that wouldn’t be enough to suggest a favorable trend reversal.

Although Ethereum’s bearish race continues to bog down, it is still starting its second technical rebound after the one that lasted from January to late March. With the idea that the general panic phase is largely consummated. This would favor a short-term return of the cryptocurrency prince to the next resistance of $ 1700 first, then that of $ 2300.

Many investors would dream of ETH’s price crossing the descending line since its last ATH in November 2021. But if I were you in front of my screens, I would think a long time before concluding a new bull run.

On the one hand, the evolution of the future Kumo in weekly units does not encourage optimism throughout the year 2022. And on the other hand, if the crossing of the descending line were to occur in the coming weeks, it would materialize when prices still remain. below the Kumo. Especially since it is a classic false signal to buy.

This is why the Ethereum bear race may be far from over. The technical rebound simply risks delaying the capitulation. This phase, feared by investors, could take place when the Fed accelerates the reduction of its balance sheet from September. Not to mention that rate hikes are already weighing heavily on more volatile asset classes, especially cryptocurrencies.

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