1. Overall Market Context
• ETH/USD recently saw a strong downtrend, followed by a corrective move within an ascending channel (highlighted in blue).
• After breaking below this rising channel, the price resumed its bearish momentum.
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2. Key Zones Identified
Resistance Zone: ~$1,590–$1,600
• Multiple Fibonacci extension levels (2.618 to 4.236) converge here, indicating strong overhead resistance.
• This is likely a key rejection area where sellers are stepping in.
Support Zones:
• First support zone: ~$1,550.6 and $1,537.3 — Previous price reaction zones, also close to 1.618 Fib extension.
• Major support zone: ~$1,490 area (highlighted in yellow box) — This is the target area for the projected drop.
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3. Fibonacci Extensions
• Based on the prior move down, the Fibonacci extension tool is being used to project potential levels where ETH might find support:
• 1.618 at ~$1,559
• 2.618 at ~$1,574
• 3.618 and 4.236 around $1,590–$1,599
These levels often act as target zones for corrective or impulsive waves.
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4. Chart Pattern Analysis
• Rising channel broke to the downside — a bearish sign.
• The blue zigzag line indicates a projected move lower, possibly a wave structure in Elliott Wave theory (impulse down, corrective bounce, another impulse).
• Suggests the market could retest lower Fibonacci targets, and potentially reach the $1,490–$1,500 demand zone.
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5. Summary Outlook (Bearish Bias)
• Breakdown of rising channel = bearish continuation
• Price rejected from major Fib zone at ~$1,590
• Likely to test lower supports: ~$1,550 → ~$1,490
• Watch for a bounce or reversal around yellow box zone (~$1,490)
• ETH/USD recently saw a strong downtrend, followed by a corrective move within an ascending channel (highlighted in blue).
• After breaking below this rising channel, the price resumed its bearish momentum.
⸻
2. Key Zones Identified
Resistance Zone: ~$1,590–$1,600
• Multiple Fibonacci extension levels (2.618 to 4.236) converge here, indicating strong overhead resistance.
• This is likely a key rejection area where sellers are stepping in.
Support Zones:
• First support zone: ~$1,550.6 and $1,537.3 — Previous price reaction zones, also close to 1.618 Fib extension.
• Major support zone: ~$1,490 area (highlighted in yellow box) — This is the target area for the projected drop.
⸻
3. Fibonacci Extensions
• Based on the prior move down, the Fibonacci extension tool is being used to project potential levels where ETH might find support:
• 1.618 at ~$1,559
• 2.618 at ~$1,574
• 3.618 and 4.236 around $1,590–$1,599
These levels often act as target zones for corrective or impulsive waves.
⸻
4. Chart Pattern Analysis
• Rising channel broke to the downside — a bearish sign.
• The blue zigzag line indicates a projected move lower, possibly a wave structure in Elliott Wave theory (impulse down, corrective bounce, another impulse).
• Suggests the market could retest lower Fibonacci targets, and potentially reach the $1,490–$1,500 demand zone.
⸻
5. Summary Outlook (Bearish Bias)
• Breakdown of rising channel = bearish continuation
• Price rejected from major Fib zone at ~$1,590
• Likely to test lower supports: ~$1,550 → ~$1,490
• Watch for a bounce or reversal around yellow box zone (~$1,490)
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.