- Ethereum price stopped against a combination of solid Fibonacci and Ichimoku resistances.
- Sellers are likely to regain control and push Ethereum to new two-month lows.
- Oscillators will support lower prices soon.
Ethereum price is facing the same attack as the broader market, with news that China has officially made all cryptocurrency transactions illegal. The market was perfectly positioned for bearish news to give sellers more control.
Ethereum price does not hold over $ 3,000
Ethereum price appeared ready to resume its massive bull run when it broke through the cloud and closed in the $ 3,100 value range. However, buyers were unable to stop propelling Ethereum any further. One look at the series of resistance zones near the $ 3,200 to $ 3,300 level would give any trader or investor a break from buying:
- Daily Tenkan-Sen ($ 3,170)
- 50% Fibonacci Retracement (3,238)
- 61.8% Fibonacci Expansion ($ 3,182)
- Daily Kijun-Sen ($ 3,340)
- 61.8% fibonacci retracement ($ 3,392)
- High Volume Nodes ($ 3,320)
As a result of the failed breakout, sellers have regained control and are trying to push the Ethereum price below the next support level of $ 2,500-2,200. The Relative Strength Index shows a bear flag with failed support from the last oversold level in a bull market (40). Optex belts have turned south again and are likely to revisit the lower extreme oversold – adding to short-term selling pressures.
ETH / USD daily Ichimoku chart
Bulls can relieve short-term selling pressures – but the restrictions are time-dependent. An Ethereum price closing at $ 3,600 would meet one of the necessary conditions for an Ideal Bullish Ichimoku breakout setup. The only missing condition is the chikou span in “open space”. To be in “open space”, the chikou range must be above the candlesticks and must not catch any candlesticks for the next five to ten periods.
For the “open space” condition to be correct, Ethereum price must close at $ 4,000, or buyers must wait until October 4th when the “open space” threshold returns to the value range of $ 3,600.
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