Ethereum (ETH) Weekly Ichimoku ChartEthereum (ETH) Weekly Ichimoku Chart
One of the most bearish conditions that you could find on any time frame is a condition where price and the Chikou Span are both below the Cloud, with the Chikou Span also being in open space (open space is a condition where the Chikou Span will not intercept any candlesticks over the next five to 10 trading periods). The extreme bearish condition described above is precisely what kind of situation we can see Ethereum in on its weekly chart. Last week threatened a move further south, with a continuation of the sell-off that occurred during the week of November 18th, but buyers stepped in and provided support. This may have just been profit-taking from the sell-off on the week of the 18th, or it was a legitimate support action. Overall, the conditions are incredibly bearish, with absolutely no indication of any bullish features on the chart. Price is below the Tenkan-Sen and Kijun-Sen, with the Tenkan-Sen below the Kijun-Sen. Current Senkou Span A is below Current Senkou Span B. Future Senkou Span A is below Future Senkou Span B. Weekly average volume continues to drop. This week will provide further context to the direction of this market for the remainder of 2019: capitulation or bullish continuation.
Ethereum (ETH) Daily Ichimoku ChartEthereum (ETH) Daily Ichimoku Chart
While the look of the daily chart and weekly chart may be aesthetically different, the objective conditions of price action with the Ichimoku Kinko Hyo system are nearly identical. Current Senkou Span A is below Current Senkou Span B, Future Senkou Span A is below Future Senkou Span B, the Tenkan-Sen is below the Kijun-Sen, and the Chikou Span is below the Cloud as well as in open space. The only two conditions we see on Ethereum’s daily chart that is not present on the weekly chart is price above the Tenkan-Sen and both the Tenkan-Sen and Kijun-Sen outside of the Cloud. If the weekly chart was signaling the current weekly candlestick to determine the direction of the remainder of 2019, then the daily chart is undoubtedly hinting at – and leaning towards – a bearish continuation move. A robust short re-entry condition would be achieved if the daily candlestick returns below and closes below the Tenkan-Sen. There may be some hints of bullish support if bulls can keep price above the daily Tenkan-Sen
Ethereum (ETH) 4-hour Ichimoku ChartEthereum (ETH) 4-hour Ichimoku Chart
Ethereum’s 4-hour Ichimoku chat is the definition of indecision, consolidation, and volatility. Price, the Tenkan-Sen and the Kijun-Sen are all inside the Cloud. In my trading, whatever instrument I trade, I always look at the longest time frame first, and if I see an instrument trading inside the Cloud, I skip that chart. The Cloud is where trading accounts go to die. But this is the 4-hour chart, so I don’t have to skip it. The 4-hour chart brings the Weekly and Daily charts into a little clearer perspective. We all know that trend changes occur on faster time frames before they do on more extended time frames. We also know that a significant amount of fake-outs and whipsaws can happen before longer time frames initiate and confirm a broader trend change. The 4-hour chart could be hinting at a bullish shift in direction. The consolidation here is represented very clearly with price, the Tenkan-Sen and Kijun-Sen all trading inside the Cloud. The Chikou Span is also inside the candlesticks – another consolidation condition. The Cloud is this and bearish (Current Senkou Span A below Current Senkou Span B). However: on the bullish side of things we do have one positive condition – and a powerful one at that: Future Senkou Span A above Future Senkou Span B. We should consider a new bullish move to be confirmed if both price and the Chikou Span can move above the Cloud on the 4-hour chart.