Ethereum price action has not been immune to the broader effects weighing on risk-on markets. Fears of an imminent invasion of Ukraine by Russia have sidelined many market participants or have scared off investors entirely. However, a new bull market and expansion move may be developing for ETH.
Ethereum price action on its daily Ichimoku chart is, at first glance, ugly. ETH is below the Ichimoku Cloud, the Tenkan-Sen, and the Kijun-Sen. From an Ichimoku perspective, ETH is at the weakest and most bearish position since the Ideal Bearish Ichimoku Breakout was triggered on December 28, 2021.
The only Ichimoku indicator preventing a total collapse of Ethereum price is the Chikou Span, which is currently above the bodies of the candlesticks. If sellers push ETH to a close at or below $2,400, bears could probably push price to $2,000 or lower.
However, despite the near-term bearish outlook, Ethereum price completed a very standard and normal behavior: a retest of a breakout from a consolidation zone. The congestion zone between $2,300 and $2,600 (61.8% Fibonacci retracement) that existed between January 22, 2022, and January 31, 2022, was broken on February 1, 2022.
Sellers retested the former resistance level turned support at $2,600, but buyers stepped in and prevented further losses – for now. However, Ethereum price must return to at least the 50% Fibonacci retracement at $2,900 to prevent further bearish price action and position Ethereum for another run towards the $4,000 value area.
0 Comments