- Ethereum price faces low trading volume and single-direction trading during the Saturday trade session.
- First Ichimoku support level currently tested.
- Upcoming Kumo Twist could trigger renewed buying pressure.
Ethereum price action is relatively unchanged from Friday. The slow and deliberate march south continues. Buyers who are mostly vacant may be waiting for a deeper discount before re-entering the market.
Ethereum price pulling back to $4,000 would be a good thing
Ethereum price is currently on its third consecutive down day. This move comes right after Ethereum made a new all-time high on November 3rd. Ethereum may likely make a push to the Kijun-Sen at the $4,000 value are this weekend, creating the first test of that level since it broke above it back on October 1st. Given the nature of how weekend price action historically performs, it would be an expected move for Ethereum to move lower.
The oscillators on the daily chart support a push south, too. The Optex Bands and the Relative Strength Index show a slight curve lower, but nothing as extreme as the Composite Index. The Composite Index has a very steep hook, nearly vertical at its current angle. Given that the Composite Index often leads the Relative Strength Index and the Optex Bands, the extreme of its slope hints at a very high probability of a deeper push south. But that may not be a bad thing for Ethereum price.
Since reaching new all-time highs near the $4,500 value area, buyers have generated little interest. A pullback is likely required for interest to return to the buy-side. And from a long-term bullish perspective, a pullback sooner rather than later would be necessary to prevent an even deeper corrective move. A phenomenon within the Ichimoku system known as a Kumo Twist (when Senkou Span A crosses above Senkou Span B) can often presage when a turn in a market occurs. The next Kumo Twist occurs on November 9th. If Ethereum continued to rally higher on that date, a corrective move below $4,000 would likely occur.
ETH/USD Daily Ichimoku Chart
Instead, if Ethereum pulls back down to the Kijun-Sen and can remain at that $4,000 around November 9th, a minor swing low will have developed near the Kumo Twist, giving Ethereum the time cycle and price levels needed to trigger another leg higher.