FX.co ★ Ethereum shows signs of weakness.

Ethereum broke below $3,700 and continues making lower lows and lower highs in the short-term. Short-term trend is bearish as long as price is below $4,148. This is also confirmed by the Ichimoku cloud indicator.

Blue line- support trend line

Red line - resistance

Ethereum broke below the blue support trend line. This is an important sign of weakness. Price is making lower lows identified by the red downward sloping trend line. As long as price is below it, trend remains bearish.

Ethereum has provided another bearish signal according to the Ichimoku cloud indicator. Price broke below the Daily cloud and at the back test of the cloud, price got rejected at the lower cloud boundary. Making new lower lows combined with the rejection we saw at $4,130, is a bearish combination implying more selling should be expected.