Ethereum (ETH)- Cold shower imminent below $1000?

Will the prince of cryptos capitulate before the end of the year? – Although the price of Ethereum (ETH) shows an unfailing will not to falter below these lows of the year unlike Bitcoin, the bulls remain powerless to neutralize its downward trend. This is why it is time to sound the alarm on a possible cold shower under both major and symbolic support around $1,000, despite the attempts to rebound since mid-June.

Moreover, the current uncertainties on the financial markets are still present in the image of inflationary pressures which are not appreciably reduced. Hence the FED’s fierce determination to continue its monetary tightening. Starting from this bitter observation, let’s comb through the latest technical analyzes of the prince of cryptos to know the end of the year 2022 will be animated or not.

Ethereum in weekly units – Another failure below the falling line in sight

Ethereum had a very hectic week. At first, the bulls were happy to see prices come back to around $50 towards the $1400 resistance following the supposedly good US inflation data released last Tuesday. Unfortunately, the euphoria was short-lived. Because the next day the FED has clearly dotted the i’s regarding current monetary policy. Which explains the new failure of the prince of cryptos under the downline with a weekly candle showing the bulls inability to support prices.

Ethereum price analysis in weekly units - December 20, 2022

To make the addition worse, this technical signal only confirms the respective status quo of ETH and Chikou Span prices below the Ichimoku cloud aka the Kumo. On the other hand, it could also compromise the $1200 in the coming weeks. So that we would eventually come back towards the 1000$, not far from the lows of the year. And in this sense, we would be under threat of a third wave of bear market correction since the last ATH in November 2021. With the possibility of bears hinting at a three-digit Ethereum.

In order to avoid this scenario, the bulls must absolutely find the resources to carry the prices of ETH beyond the Tenkan and the Kijun accompanied by a crossing of $1400. But given the quality of the latest good news on the financial planet, this would only be a meager hope.

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Ethereum in daily units – Prices under the Tenkan and Kijun

Last week in daily units, Ethereum was above Tenkan and Kijun. But at the time of writing, the opposite is currently happening following the backlash from the last Fed meeting. With prices that failed under the Kumo. From now on, they would be very close to releasing the 1200$.

Analysis of the price of Ethereum in daily units - December 20, 2022

That being said, the support at $1000 remains at a safe distance. But all it would take is a new negative catalyst in addition to current uncertainties in the financial markets for the bears’ wishes to come true. In this case, the breakout of $1200 would push ETH prices and the Chikou Span away from the Ichimoku cloud. And de facto, we would be referring to the pessimistic scenario evoked on the weekly chart.

Conversely, the maintenance of $1200 would again allow the crossing of the descending line. However, the resistance of $1400 and the SSB (Kumo upper boundary) could be sell targets to generate a pullbackwhich itself would invalidate the umpteenth attempt to bounce back from the prince of cryptos.

Low of the year or not, Ethereum fails to crunch the resistances above its head. Which proves the harsh reality of its bear run since its last ATH in November 2021. And until we have a series of major level crossings like $1700, $2300 or $2800, the risk of going below $1000 will remain relevant.

Assuming that the financial markets suddenly fall into total stress for unknown reasons, watch out for the magnitude of the next wave of correction, which could take on a disproportionate dimension. In which case, the ETH bear run would enter a phase of capitulation, which itself could lead investors to make constrained decisions. With the fear that the supports will melt like snow in the sun.

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