Ethereum Pride Prediction: ETH bears target $2,200

  • Ethereum price halted against a combination of solid Fibonacci and Ichimoku resistances.
  • Sellers are likely to regain control and push Ethereum to new two-month lows.
  • Oscillators support lower prices soon.

Ethereum price faces the same assault as the broader market with news that China is officially made all cryptocurrency transactions illegal. The market was positioned perfectly for bearish news to give sellers more control.

Ethereum price fails to hold above $3,000

Ethereum price looked poised to continue its massive bull-run when it broke above the Cloud and closed within the $3,100 value area. However, buyers were unable to unwilling to push Ethereum any higher. One look at the series of resistance zone near the $3,200 to $3,300 levels would give any trader or investor pause to buy:

  1. Daily Tenkan-Sen ($3,170)
  2. 50% Fibonacci retracement (3,238)
  3. 61.8% Fibonacci expansion ($3,182)
  4. Daily Kijun-Sen ($3,340)
  5. 61.8% Fibonacci retracement ($3,392)
  6. High volume node ($3,320)

As a result of the failed breakout, sellers have regained control and look to push Ethereum price below the next support level at $2,500 to $2,200. The Relative Strength Index shows a bear flag with failed support against the last oversold level in a bull market (40). The Optex bands have curled south again and will probably revisit the lower extreme oversold – adding to near-term selling pressure.

ETH/USD Daily Ichimoku Chart

Bulls can invalidate the near-term selling pressure – but the limitations are time-based. An Ethereum price close at $3,600 would fulfill all buy one of the necessary conditions for an Ideal Bullish Ichimoku Breakout setup. The one condition lacking is the Chikou Span in ‘open space.’ To be in ‘open space,’ the Chikou Span needs to be above the candlesticks, and it must be free from intercepting any candlesticks in the next five to ten periods.

For the ‘open space’ condition to be accurate, Ethereum price needs to close at $4,000, or buyers will have to wait until October 4th when the threshold to close in ‘open space’ returns to the $3,600 value area.

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