FX.co ★ Ethereum breaks short-term support.

In our last analysis on Ethereum using the Ichimoku cloud indicator we warned traders that a pull back was possible as price was giving us some warning signals. Price had broken below the tenkan-sen (red line indicator) and we said that this was a sign of weakness. Our short-term pull back target was $3,340.

Purple lines- bearish divergence

Ethereum has broken below the Kumo (cloud) support and has provided a bearish signal. Price is around $3,200. Resistance by the cloud is at $3,300 and as long as price is below the cloud it will be vulnerable to more downside. Next support is at $3,025 and next at $2,785. Bulls hope to see price make a higher low and then resume the uptrend.