The latest technical analysis leads to believe in a bounce extension of the prince of cryptos.
In just over 24 hours the next FED meeting will take place. Many investors are hoping for a favorable outcome to extend the start of the year cryptocurrency festivities, especially since much of the rally translated into hopes of a change in monetary policy from the US central bank.
The Ethereum (ETH) price broke free from FTX pre-bankruptcy levels, and could now go on the offensive in the face of major resistance, which is causing serious headaches for the bulls.
Humility remains in order, as long as there are no catalysts that could make them give in. By wanting to take in too quickly that US inflation is quietly slipping back below 2%, bulls could be at the mercy of an unexpected hangover.
In a market context in which there have been no major setbacks so far, the following are possible scenarios for the Ethereum price at the moment, and after the FED meeting.
Ethereum in Weekly Units – Prices Still Above Kijun
During a series of four consecutive weeks of increases, Ethereum remains in a position to exceed $1,700. Currently, it is up and in contact with the Kijun. In parallel, the Chikou Span stays on course and beyond the Tenkan.
Assuming a bullish extension beyond $1,700, the Ethereum price would go into the cloud, eventually attacking $2,300. The bears would stop being masters of their destiny, while the bulls would start to regain confidence, without necessarily declaring victory in the near future.
It would be possible to see the prince of cryptocurrencies again under the Kijun, simultaneously with the support of $1,400 and the Tenkan, which in turn stopped its bullish momentum at the beginning of the week. In such a case, there would be more clues about the consistency or not of the current rebound.
Ethereum in Daily Units: Losing Momentum since January 20
Since January 20, the Ethereum price has alternated small sessions both up and down near $1,700 in daily units.
The bulls would be potentially reassured by the favorable position of the course and that of the Chikou Span over the Kumo. On the other hand, a consolidation would not destroy the chances of building a full-scale rebound, as long as the recently broken levels fully play their supportive role. In this sense, the real job of the bull would be to preserve $1,400 at all costs, so that this support is positioned at the same height as the lower stop of the future Kumo, the Senkou Span B (SSB).
The break of $1,400 would lead to renewed uncertainty on the bullish side, with the prospect of ETH price falling back below FTX trading levels, towards $1,200. This would coincide with a drop in prices and the Chikou Span, respectively, below and within the cloud in the coming days. From this future observation, the bears could come out of their hibernation. And among other things, they might have ambitions to take momentum towards last year’s lows, not far from $1,000.
By Audy Castaneda
