A painful start to 2023 for the prince of cryptos? – 2022 will not go down in the annals of Ethereum (ETH) history. In fact, its second bear run in history, which is still ongoing, has caused its market cap to plummet by three quarters since its last ATH in November 2021. To the point where he left his mark on many cryptocurrency investors. Now the year 2023 starts in a complex market environment with many big uncertainties like inflation, prospect of recession, geopolitical conflict between Russia and Ukraine etc.
In that sense, Ethereum’s price has been struggling to settle into a clear trend for the past few weeks. And while it’s digesting FTX’s bust quite well compared to other altcoins, we’re not immune a threat of a new corrective wave in its bear market. Especially since the FED has indicated that it will continue tightening monetary policy. And to do that, it has to be coupled with a restrictive tax policy in the United States, accompanied by a 15% minimum tax on large corporations and a 1% excise tax on stock buybacks.
Despite these headwinds, will the prince of cryptos manage to make a positive impact? Or stay in trend of an extremely lackluster 2022? We will see that in the latest technical analysis.
Ethereum in Monthly Units – A Complicated Annual Account
The last quarter of 2022, which started well, ended badly. Because exactly Ethereum price is struggling to move away from $1200. This explains the Tenkan’s sudden decline. At the same time, he comes dangerously close to a position under the Ichimoku Cloud, also known as Kumo. As for the Chikou range, which is likely to remain above the Kumo in the coming months, it could end up below the Prince of Cryptos price.
On closer inspection, whether or not $1200 will hold would not be the crucial chart turning point that investors have been waiting for so long. Honestly, given its proximity to ATH 2018, it’s more symbolic. Investors should watch out for the $1000 support. And if the bears manage to take over for good in the coming months, not only The prince of cryptos would return to a three-unit listing. But the possibility of a third corrective wave would result in a fatal defeat for the bulls.
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Ethereum in weekly units – Worrying stalemate in price and Chikou Span under Kumo
I’ve been thinking about you for months an ethereum price and a chikou range below the kumo in weekly units. Despite FTX’s bankruptcy, the $1200 support does not erase these signals, which unfortunately are the strength of the current bear run. And besides, the prince of cryptos has not crossed the Kijun since passing under the cloud in May 2022 with several consecutive failures below the $1700 resistance.
Because of that, the rebounds we’ve witnessed before were just a breath of fresh air for the suffering bulls. And at the time of writing I am afraid that the sideways crossing of the descending line will not send a reassuring message about the future trend. Especially since future Kumo’s development would seem like a ball and chain, making it difficult to lay the foundations for a lasting upswing.
In case the cops concede the $1200 The threat below $1000 could quickly become clearer if the market context was chaotic. Worse, it would cause ETH and the Chikou range to get stuck under the Kumo for quite some time. On the contrary, we would start another technical recovery towards $1,400 or $1,700 in the absence of catalysts to worry the bears.
Ethereum in daily units – Prices very close to Kumo but with no real conviction to buy
In daily units, Ethereum is bugging investors around $1,200 and nearing the Kumo floor, the Senkou Span A (SSA). Starting from this conStatistically, the short-term trend is neutral without disrupting the bear run. With a chikou span that fades under each of the moves, the kumo, and the downline.
In the event of a rebound, the $1400 resistance near the Kumo ceiling, the Senkou Span B (SSB), would not be an easy target to tame. However, if successful We would pave the way back towards $1700 in hopes that the prince of cryptos will close his spread against the kumo in weekly units. And maybe we would then have a first gap that we could exploit to accumulate purchases cheaply.
Vice versa, Breaking $1200 would result in a retest of last year’s lows. In this case, all signals could turn red if the start to 2023 goes wrong.
In summary, there is still no interest in buying the graphic prince of cryptos. Not only that, drags always rain. But the developments of the Ichimoku Kinko Hyo in both weekly and daily units would not justify neutralizing or reversing the current trend.
In terms of extending the bear run, it would be appropriate to question the magnitude of the new wave of corrections. With the fear that cryptocurrencies will again be talked about in a bad way. Below $1000, we would potentially enter the red alert zone on Ethereum. And why not converge the 2018 bear run standards?
Finally, cryptocurrencies remain fundamentally confused by central banks’ lack of liquidity, which is particularly related to the Fed’s monetary tightening. Without restarting this engine, it must be admitted that a return to the alt-season would be illusory unless inflation in the United States contracted significantly.
But assuming central bank liquidity is off the agenda in the 2020s, we may have to endure some harsh cryptocurrency industry consolidation before seeing a new bull run. To do this, investors, whether bull or bear, should follow the course of the Fed’s monetary policy. And the least we can say for now is that the rise in bond yields could portend a new multi-equation monetary paradigm for all risky asset classes.
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