During previous trading sessions, the intersection of the Tenkan and Kijun lines, marked with a pink square, was observed on the Ethereum chart. This signal indicates a potential change in the downward trend.
The second important signal is a change in the color of the Kumo cloud, which is marked with a vertical purple line on the graph. The appearance of a lilac color in the cloud indicates a change in the priority direction of movement to downward.
The current situation
Let’s carefully look at the current values of the main components of the Ichimoku indicator to assess the current state of the market:
The Tenkan and the Kijun lines are positioned above the current price. It indicates a negative market sentiment in the moment.
Now the Kumo cloud is tinted lilac, which indicates a possible change in price dynamics in a negative direction.
In the current market profile, the price has fixed below the Kumo cloud. The boundaries of the cloud form a dynamic resistance zone for the price.
The Chikou line, which displays the closing price with a lag of 26 periods, is above the current price.
Trading recommendations:
Dynamic resistance levels are located at the Tenkan line near level 3920.07, the Kijun line around level 3960.73, the SenkouA line near level 3950.74, and the SenkouB line around level 3927.99.
The main Ichimoku system indicators prioritize searching for entry points into short positions, on a price rollback to the resistance levels.
