Ethereum Reaches Critical Support Level Before ETH Resumes March at $4,000
- Ethereum price is expected to continue its upward trend despite concerns from Russia and Ukraine.
- The recent setback was normal and natural.
- Area worth $2,900 now targeted.
Ethereum’s price action is positioned to pull the rug out of any short sellers and buyers who have been scared to get in. Technical conditions on the price chart and oscillators show that Ethereum has developed one of the largest collections of bullish setups in many months.
Ethereum price to shock and amaze
Ethereum price has several critical technical levels and patterns to watch. The first is the inverted head-shoulders model currently in development. The current right shoulder (if it stays at the current level) at $2,900 is a strong support zone with the 50% Fibonacci retracement and the daily Tenkan-Sen sharing this shoulder.
Oscillators validate the $2,900 level as the current swing is weak due to hidden bullish divergence. A hidden bullish divergence occurs, the candlestick chart shows higher lows, but an oscillator shows lower lows. This is a harbinger that the current pullback is likely to end and Ethereum price will resume its upward trend. The fact that the divergence appears as Ethereum hits the most vital near-term support zone heightens the likelihood of Ethereum finding a bottom at $2,900.
If Ethereum price resumes its uptrend, the next area of price resistance to come is the confluence zone at $3,300, where the 38.2% Fibonacci retracement and the head and shoulders neckline intersect. However, resistance continues at $3,400 due to the low of the Ichimoku cloud (Senkou Span A) and the low of a former bull flag in this price range. If the bulls can close ETH above that, the road to $4,000 is anything but a lost conclusion.
Daily chart ETH/USD Ichimoku Kinko Hyo
Downside risks remain. If $2,900 fails, there is one final support structure within the Ichimoku system that can prevent a crash in Ethereum price, and that is the Kijun-Sen at $2,700. If there is a daily close below the Kijun-Sen, a return to 2022 lows near $2,100 is highly likely.