Ethereum made new lows below $3,600 confirming we are in a short-term bearish trend, making lower lows and lower highs. Price is now bouncing towards the trend line and the Ichimoku cloud resistance by the tenkan-sen (red line indicator).
Red line - resistance
Ethereum is challenging the tenkan-sen at $3,850. Price is still below the Daily Kumo (bearish) and as long as this is the case, bears will remain in control of the trend. Resistance as we said earlier is found at the tenkan-sen at $3,850 and next at $3,930 by the red trend line. Bulls need to push price above the cloud at $4,150. Breaking above the red downward sloping trend line would be the first step towards changing short-term trend. Until then, we continue to expect more downside for Ethereum.
