- Ethereum is trading above the Tenkan-sen and within the upper FVG, creating a situation in which the buyers are defending the current price of US$3,600.
- The Kumo cloud is still bullish, as the cloud is widening and resting well below price, which is carrying the trend momentum.
- No breakdown is observed, and the retest behavior shows Ethereum’s bullish market structure remains in place following July’s upward rally.
Ethereum is also retesting short-term support on a bullish market structure technically. The technical situation is still positive, as the action is constructive and sits well above key technical levels.
Ethereum Retests Tenkan-sen Amid Price Pullback
According to a tweet from Titan of Crypto (@Washigorira), Ethereum (ETH) is retesting the Tenkan-sen, a key dynamic support line in the Ichimoku Cloud system. The Tenkan-sen, often used as a short-term trend guide, has proven to be reliable during retracements. ETH’s price has shown resilience after its rally in mid-July, and this latest retest is seen as a natural pause in that trend.
At the time of this analysis, the price of ETH is hovering around $3,600. The Tenkan-sen and Kijun-sen are fairly contrary to the price, and this serves to maintain the argument that the wider trend remains upwards. Such signs point out that buyers remain interested, so the recent decline has not yet extinguished the bullish stance in the market.
Price Action Within Fair Value Gap (FVG)
The tweet also mentions that Ethereum is trading within a Fair Value Gap (FVG), typically considered a zone where prior institutional order imbalances are addressed. These gaps often draw price toward them before a continuation in the existing trend direction.
Currently, ETH is holding above the upper FVG boundary, suggesting ongoing buyer defense around the $3,600 level. This positioning within the FVG aligns with expectations of a temporary consolidation rather than a trend reversal. Such zones tend to act as magnets for price movement and can provide strong support or resistance.
With the cloud (Kumo) positioned well below the current market level and continuing to widen, the Ichimoku structure remains bullish. There is no breakdown signal at this point.
Key Levels to Watch Moving Forward
As long as Ethereum holds above the Tenkan-sen and the upper boundary of the Fair Value Gap, the trend is considered intact. A move back above $3,750 could indicate a continuation of the recent upward momentum. Conversely, a breakdown below the current FVG may open the door for a lower test near $3,400 or $3,200. However, this scenario has not yet played out.
For now, ETH continues to find support where expected. The retest aligns with healthy market behavior after a strong price rally.
