- Ethereum price closed the prior week’s candlestick above the weekly Tenkan-Sen and Ichimoku Cloud.
- Strong evidence suggests that a new uptrend is likely to be confirmed.
- Major resistance clusters ahead still need to be broken, and downside risks remain.
Ethereum price action during last week’s trading was exceptionally bullish, easily some of the most bullish so far for 2022. Six consecutive daily closes in the green/white gave ETH traders a weekly candlestick that engulfed the bodies of the past five weeks.
Ethereum price poised for a new bullish expansion phase, but confirmation is still needed
Ethereum price action last week was very important and should not be underestimated. Closing the week higher by 15% and above the Ichimoku Cloud (Senkou Span A) was important, but the most critical event was ETH closing above the Tenkan-Sen – something that has not occurred since the week of December 3, 2021.
Ethereum price has room to run – significant room to run higher. The Optex Bands spent a record-shattering nine weeks in the extreme overlord levels, only turning up. Likewise, the Relative Strenght Index remains in bull market territory and has been ping-ponging between 40 and 50 for twelve weeks. Finally, the Composite Index crossed above its slow-moving average.
The goal that bulls ultimately need to complete is a weekly Ethereum price close above the Ichimoku Cloud (Senkou Span A) at $3,044. After that, the final resistance level on the weekly chart is the Kijun-Sen at $3,500. From there, the road to $4,000 is almost barrier-free.
ETH/USD Weekly Ichimoku Kinko Hyo Chart
Bulls shouldn’t be overly confident, though. The Chikou Span remains below the candlesticks, so any close below the weekly Ichimoku Cloud (Senkou Span B), at or below $2,350, could trigger a flash-crash towards $1,800.