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.
Trading takes place inside the cloud, which is a sign of a market instability. Cloud boundaries act as support and resistance levels for price.
The Chikou line, which displays the closing price with a lag of 26 periods, is above the current price.
Trading recommendations:
The dynamic support level is on the SenkouA line, around the 3038.94 mark.
Dynamic resistance levels are located on the Tenkan line, near the 3059.18, the Kijun line, near the 3070.32, and the SenkouB line, near 3095.48.
The main Ichimoku system indicators prioritize searching for entry points into short positions, on a price rollback to the resistance levels.
