Hello Traders,
in our second update for today, we are taking a closer look at Ethereum (ETH) on the higher time frame following the recent monthly close. The price has seen a strong bearish expansion from the $3,700 resistance level, pushing ETH into the 0.618 Fibonacci retracement zone, with the Value Area Low (VAL) of the high time frame range sitting just below it. While this is a technical trade location, there is currently no clear sign of a bounce, meaning we need to wait for further price development before considering any reversal scenarios.
If Ethereum continues its downward trajectory, the next key support sits at $1,196. This level will be crucial, as a bullish reaction here could increase the probability of a rotation back toward the highs. However, for now, price action remains rotational on the higher time frame, and the monthly trend is still in a clear downtrend with no immediate signs of reversal.
Key Technical Points to Consider
• ETH has rejected strongly from the $3,700 monthly resistance, leading to a bearish expansion into the 0.618 Fibonacci retracement zone.
• There is no clear bullish reaction yet, meaning traders should wait for further price action confirmation before considering a bounce.
• The next key support at $1,196 is critical—if price reaches this level and finds buyers, it could trigger a rotation back toward the highs.
Potential Scenarios & Conclusion
If Ethereum stabilizes within the 0.618 Fibonacci region and forms a strong bullish reaction, it could signal a potential short-term bounce. However, without confirmation, the risk of further downside remains, with $1,196 acting as the next major support level.
Traders should approach the market with caution, as the monthly trend is still bearish, and a clear reversal signal has yet to emerge. Until price action provides stronger confirmation, Ethereum remains in a rotational phase, requiring patience before determining the next high-probability trade setup.
in our second update for today, we are taking a closer look at Ethereum (ETH) on the higher time frame following the recent monthly close. The price has seen a strong bearish expansion from the $3,700 resistance level, pushing ETH into the 0.618 Fibonacci retracement zone, with the Value Area Low (VAL) of the high time frame range sitting just below it. While this is a technical trade location, there is currently no clear sign of a bounce, meaning we need to wait for further price development before considering any reversal scenarios.
If Ethereum continues its downward trajectory, the next key support sits at $1,196. This level will be crucial, as a bullish reaction here could increase the probability of a rotation back toward the highs. However, for now, price action remains rotational on the higher time frame, and the monthly trend is still in a clear downtrend with no immediate signs of reversal.
Key Technical Points to Consider
• ETH has rejected strongly from the $3,700 monthly resistance, leading to a bearish expansion into the 0.618 Fibonacci retracement zone.
• There is no clear bullish reaction yet, meaning traders should wait for further price action confirmation before considering a bounce.
• The next key support at $1,196 is critical—if price reaches this level and finds buyers, it could trigger a rotation back toward the highs.
Potential Scenarios & Conclusion
If Ethereum stabilizes within the 0.618 Fibonacci region and forms a strong bullish reaction, it could signal a potential short-term bounce. However, without confirmation, the risk of further downside remains, with $1,196 acting as the next major support level.
Traders should approach the market with caution, as the monthly trend is still bearish, and a clear reversal signal has yet to emerge. Until price action provides stronger confirmation, Ethereum remains in a rotational phase, requiring patience before determining the next high-probability trade setup.
Free Alpha Group t.me/freetradingden
Unlock up-to $8,000 USDT in bonuses, only at Blofin - Link Below to start Trading.
partner.blofin.com/d/alchemisttrader
Unlock up-to $8,000 USDT in bonuses, only at Blofin - Link Below to start Trading.
partner.blofin.com/d/alchemisttrader
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.
Free Alpha Group t.me/freetradingden
Unlock up-to $8,000 USDT in bonuses, only at Blofin - Link Below to start Trading.
partner.blofin.com/d/alchemisttrader
Unlock up-to $8,000 USDT in bonuses, only at Blofin - Link Below to start Trading.
partner.blofin.com/d/alchemisttrader
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.