September 24, 2023

Ethereum Bulls Fail to Conquer Vital Resistance Confluence, ETH to Drop to $3,800

  • Ethereum (ETH) price failed to break past the Cloud and dipped into the bear flag again.
  • The daily chart prints an emerging bearish engulfing candle pattern.
  • Oscillators suggest more selling momentum.

Ethereum (ETH) price encountered a significant bearish move during yesterday’s sessions. Meanwhile, the daily candle has represented consistent, persistent, and constant selling without reprieve hints.

Ethereum Bears Smack Prices and Bulls Suffer

Ethereum price movements have attempted to crack two governing resistance zones within four days. The obstacles include Senkou A (Cloud) top and the former bear flag’s bottom channel.

Meanwhile, ETH has its current short-term support at the confluence area, comprising Kijun-Sen, Tenkan-Sen, and dominant internal trend-line at $4,100. However, market participants should not overlook the daily candlestick’s nature – it defines a massive bearish warning.

A bearish engulfing candle pattern is one candle that engulfs all the range by the preceding candlestick. Meanwhile, ETH’s prevailing bearish engulfing candle remains strong as it ‘engulfs’ the previous five candlesticks’ bodies.

The next reliable support area that ETH will test sits at $3,800, Senkou Span B and Cloud’s bottom. Senkou Span B represents the most resilience resistance/support in the Ichimoku Kinko system. Failure to register a daily close beyond this level can catalyze a massive southward push.

Buyers need a rally past the Cloud and a close at Chikou Span’s open space to overturn this short-term bearish outlook. A close past $4,650 would satisfy all these requirements. However, bulls seem weak now, thus higher plunging probability in the upcoming sessions. Ethereum might drop $3,800 to seek direction.

Ethereum dropped 7.54% during Thursday’s price movements, ending the day near $4,106. While publishing this content, ETH traded at $4,145 after a 0.96% surge. Earlier sessions had Ethereum falling to $4,102 before climbing to $4,146. Meanwhile, the dominant altcoin did not test its crucial resistance and support levels early on. For now, ETH has to rise past 44,224 to test the initial resistance at $4,373.

ETH Technical Indicators

  • First support level – $3,958
  • Pivot level – $4,224
  • First resistance level – $4,373
  • 6% Fibonacci retracement level – $3,738
  • 2% Fibonacci retracement level – $3,039
  • 62% Fibonacci retracement level – $1,909

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