Ethereum Analysis – Back in Uncertain Trend

Following the return of Bitcoin below the resistance of $46,000, Ethereum seems determined to follow the same path. All this while strictly respecting the logic inherent in the cryptocurrency cycle. Indeed, ETH has just failed in turn below the resistance of $3400. With only one real question in perspective: the fear of again suffering the mood swings of Satoshi Nakomoto’s digital currency, as has been the case in recent months.

This analysis is offered to you in collaboration with Le Trading du Coin and its algorithmic trading solution.

The Latest ETH Price Technical Analysis Laments a possible questioning of its upward trend, initiated since mid-March. And this recent bad momentum may well threaten the next supports. With cryptocurrency investors taking a violent resurgence of uncertainty in the face, when they thought it was all finally a thing of the past.

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Ethereum – Bearish Engulfing at the $3400 Level?

The weekly bearish candle, triggered by the aggressive intervention of future FED Vice-Chairman Lael Brainard, is giving rise to a bearish engulfing at the time of writing this analysis. As a reminder, this is a downward reversal pattern that occurs on a market top. With the eventual consequence, the imminent end of the Ethereum rebound that started in mid-March.

This bearish engulfing is both below the resistance of $3400 and the 30-week moving average (MM30 weekly). And in the event of a new bearish candle next week, the price trend of ETH may well become uncertain again. With the key, the reintegration of its horizontal channel. But also a confirmation of Weinstein’s phase 3 which, itself, inspires great caution.

For the moment, the technical indicators in weekly units have not yet gone into a spin. But it won’t be long if Bitcoin were to continue to consolidate. And more specifically, if it heads for good towards the head-shoulder neckline around $41,000. Because let’s not forget that Ethereum has a strong tendency to follow it, for better or for worse.

Ethereum – Failing below the 200-day moving average

This weekly bearish engulfing did not happen by chance. Indeed, in daily units, this is explained by the two significant successive bearish candles on Tuesday and Wednesday. The latter having caused Ethereum to return to its horizontal channel (orange rectangle). But long before that, the previous doji already testified to the inability of the second cryptocurrency by capitalization to extricate itself beyond $3400.

Daily Ethereum price analysis - April 08, 2022

This false breakout of a major level coincides with ETH breaking below the 200-day moving average (200 dma daily). This makes the technical signal even more unfavorable from a very short-term perspective. And as if to drive the point home, the last two bullish candles are struggling to compensate for the losses of this beginning of the week. Because the words of Lael Brainard and the last minutes of the FOMC are sufficient pretexts to curb the ardor of potential buyers.

In this recent bearish momentum, technical indicators continued to consolidate towards their waterline. Especially since the downside margin remains substantial, and more particularly for the MACD which could approach the zero line. Thus, all of the technical signals mentioned could well lead Ethereum prices towards the $2800 support.

ETH – A destiny always linked to the movements of Bitcoin

As mentioned in several previous market points, Ethereum is closely related to Bitcoin. And until the latter signals a favorable trend reversal, ETH’s momentum will remain, at best, uncertain. But it is clear that many investors have not grasped the relevance of the cryptocurrency cycle.

And unfortunate coincidences sometimes make things right. Because only a few days before the failure of ETH below the MM200 daily, the BTC had also stumbled below this same average. And this just before re-entering its horizontal channel located between the support of $34,000-35,000 and the resistance of $46,000. A configuration that suggests that the cryptocurrency market is currently far from an altseason!


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