Ethereum — The Bearish Case We Wanted To Avoid 🔻
We discussed just yesterday that Ethereum's short-term chart contains a couple of bearish signs. Unfortunately, they played out mercilessly today, and ETH broke through a couple of support areas.
Let's take a look and discuss what's needed to return to the bullish path.
1 - Within a couple of hours, ETH broke three support lines. It started with the upper cloud line and was followed by a break out of the cloud and the break of the 3,300 support. Logically, this was followed by a sharp dip.
2 - Currently, the previous cloud level at ~3,200 provides some support. However, we have to consider this intermediate support only.
3 - In addition to the bearish signs, the future Ichimoku cloud has turned red, indicating an upcoming bearish trend.
4 - Finally, the price also broke below the EMA200 on the 4H chart is holding only slightly above this crucial line on the daily chart.
Way Forward
It looks like the "sell-the-news" scenario will play out, and we will encounter a sell-off before we continue higher. In the long run, nothing has changed from my perspective. We are still all set for 4k during the next weeks. However, in the short term, we might experience more blood and dive down to the 2,8k level. At the same time, the 2,8k level must hold!
