ETH/USDT has been in a downtrend since peaking at around $4,600, with lower highs and lower lows forming a descending pattern.
The current price is near the significant support zone around $2,100, which is crucial for maintaining the bullish structure.
The key support is at $2,100, a historically significant zone that has acted as support during prior market corrections.
The immediate resistance to watch is around $3,000, a previous support zone that has turned into resistance. A move above this level could lead to further bullish momentum towards the next resistance near $3,800.
A strong bounce from the $2,100 support, potentially leading to a test of the $3,000 resistance. A break above this resistance could target higher levels around $3,800.
Failure to hold the $2,100 support may trigger a deeper decline towards the next support zone around $1,800, or possibly lower if selling pressure intensifies.
Pattern Observation:
The chart suggests a potential double-bottom formation around the $2,100 level, which could indicate a bullish reversal if confirmed by a breakout above the neckline resistance at $3,000.
The presence of a descending triangle pattern also hints at a bearish continuation if the price fails to break above the key resistance.
Volume and Indicators:
Volume analysis will be crucial; an increase in buying volume at the support level would strengthen the case for a reversal.
Oscillators like RSI near oversold conditions would support a potential bounce, while MACD bullish crossovers could confirm a trend change.
For a bullish outlook, setting stop-loss levels just below the $2,100 support is advisable to mitigate downside risk.
A bearish strategy would involve short positions on a confirmed breakdown of the $2,100 level, targeting lower support zones.
This analysis suggests that ETH is at a pivotal support level, where a potential reversal could occur if buying interest increases. Monitoring key levels and volume will provide further insights into the next likely move.
Disclaimer: This is not financial advice. Stay updated with market movements and adjust your trading strategy accordingly. Keep an eye out for further updates and analysis. Thank you!