Bullish Hammer Candle as Ethereum Price Wicks Under $1,000

The ETH price crashed under $1k, dipping to a Saturday low of $975 then closed a bullish hammer candle back above $1k – on the four hour chart. Will Ethereum go back up now? From a technical analysis standpoint, some ETH bulls might enter positions with a stoploss under the wick.

That Ethereum crash took place alongside the Bitcoin crash so far this weekend to $18,740 before recovering back over $19,000, closing a four hour candle above that level but not yet reclaiming $20k.

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A bullish hammer candlestick pattern is usually a signal for bulls to step in and can mark a local bottom – with a long lower wick, and the opening and closing prices being close together.

Bullish hammer candle pattern

They signify that at least on that timeframe, bears were unable to keep the price down and buyers were stronger. Bullish hammer candles usually appear after a long bearish trend and can signal a price reversal, at least temporarily.

Weekends have lower liquidity – this weekend is also a long weekend with the Juneteenth holiday on Monday, so US markets will be closed – and price action tends to be volatile with ‘fake outs’ in either direction.

Trader Michaël van de Poppe (CryptoMichNL) is predicting this breakdown to the downside could be a fake-out, and favors longs more than shorts.

The 21 EMA on the four-hour Ethereum price chart is at just over $1,100 so that could be a price target for ETH in the short term if that bullish hammer does lead to a change in the trend direction.

Trader Jacob Crypto Bury posted a video two days ago predicting that the Ethereum price could wick under $1,000.

He plotted a falling wedge the Ethereum price is trading in and marked out a strong buy zone around $800 – $930 if ETH does see further continuation to the downside.

Overall many traders are bullish on Ethereum in the long term and see it recovering to new all time highs. See our Saturday Bitcoin drop update for more examples across crypto Twitter.

Some traders will be waiting for more price action to play out on BTC and ETH this long weekend however and a clear trade direction to form, as there are extreme levels of fear, uncertainty and doubt (FUD) in the crypto markets amid institutions like Three Arrows Capital being liquidated and Celsius halting withdrawals.

Update – the next four hour candle closed red but at $989, above the low of $975. The candle after that then retested $1,000, and was rejected there before the ETH price fell to a low of $881.

That may have been due to whales attempting to liquidate one ETH whale who had a 152k ETH position at around that price.

However they failed to do so and as a result of that plus news of Celsius paying off $27 million in debt, the Ethereum price recovered to $1,015 – currently trading at around $998 at the time of writing.

Ethereum is also printing a bullish engulfing candle on the four hour chart now after that move.

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Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.

Author: Matt Williams

Hailing from Northampton UK, Matt has a keen interest in stocks and crypto, and ways to earn passive income online to achieve financial freedom.… View full profile ›

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