Ether Price Reversal Signals: More Downside Ahead?
Since Ethereum was unable to maintain momentum over $4,000, the price movement is currently reversing course in the direction of important support levels. Given that the overall structure is still corrective and that sentiment and price are both bearish, ETH seems to be moving into a more vulnerable phase. Although there is still little volatility, downward pressure is steadily increasing.
ETH Price Tests Crucial Demand Zone After Channel Rejection
ETH is currently moving, approaching a critical demand zone close to $3,400 on the daily timescale after being rejected from the higher trendline of the falling channel. The 100-day moving average has not been regained by the asset either. The coin is currently trading at about $3,300, above the 200-day moving average. Although the $3,500–$3,300 range is crucial and has previously been protected, the RSI at 38.68 and the lower highs on each bounce imply that bulls are losing ground. If ETH is unable to recover much from this region, it may break below it, the 200-day moving average, and the lower boundary of the channel. The second step down toward the $3,000 zone in the upcoming weeks would probably follow from this.
Ethereum Loses Momentum After $4,200 Rejection
A more pronounced bearish picture is presented by the 4H chart. Just below $3,700, the price is about to sweep up sell-side liquidity. A break below this level would indicate the establishment of a definite bearish structure by confirming weakness and setting a new lower low. Additionally, the RSI is getting close to oversold circumstances. Nevertheless, no bullish divergence has yet to be printed. A decline toward the $3,400–$3,500 demand zone appears very likely following the rejection from the $4,100–$4,200 region and the obvious change in momentum. It’s also conceivable that the channel’s lower boundary will be tested again. If this region is broken, the price may drop by over 10% and go toward the next support level, which is about $3,000. However, if a fictitious breakdown occurs, this situation might alter.
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