Ethereum (ETH) – Sellers confronting a familiar support zone aiming to stretch the descentPosted on Tuesday, November 22 2022 at 8:24 pm GMT+0000
Ethereum (ETH) sellers were confronting a familiar support zone that halted the sell-off on November 9th, and the medium-term technical picture remains obviously discouraging.
The bearishly aligned Ichimoku lines are indicating that downward forces currently sit on the driver’s seat. Additionally, the oscillators are hinting at further price depreciation, as the TSI is falling without a parachute beneath its signal and zero lines, and the momentum indicator is sloping south far below its equilibrium level.
Nonetheless, bears will become more confident that the drop from the November 4th high will extend further, following a drop beneath the 1,071 hurdle, currently under attack. In such a scenario, those are expected to target the tough support zone of 1,005 – 997, linking the late-June and July bottoms, which is of remarkable psychological importance. Cracking that floor will boost selling interest likely towards the June 18th trough of 880.
Traders however are approaching the above possibility with some caution at the moment, as the IMI is ticking up above the 30-threshold after navigating for some time in the oversold area, raising the odds for some consolidation or even fresh upside corrections.
Hence, if the confronted barricade proves strong enough for another bounce, the price will initially meet the Tenkan-sen line at 1,181 ahead of the September 21st inside swing bottom of 1,220. Another extension from here could test the Kijun-sen line at 1,374 ahead of the lower surface of the cloud and the adjacent November 2nd low of 1,502. A decisive step beyond the latter will confirm additional buying activities towards the current month’s highs of 1,677.
All in all, Ethereum’s medium-term outlook is currently at risk of deteriorating dramatically. Unless the price shoots higher beyond 1,220, a sharper sell-off will likely evolve.