[ETH] Levels and Zones to Watch if (when) ETH Continues DownUpdated the key levels I'm watching for potential bounces, reversals, consolidations, etc. on ETHUSD as we wait for consolidation to end after heavy selling last couple days. The last chart I posted showed a channel, which I was surprised had broken down so quickly and violently just after already strong bear moves. Volume is spiking here on the daily chart.
As you can see I've got a No Buy Zone labeled, which we are currently consolidating right at the top of. This consolidation could be prolonged quite a while and might rotated about the $590 axis. The zone had no resistance on the way up and likely needs to be "Traded Out" so to speak.
Below that, a POTENTIAL Reversal Zone could be around the top of the massive green candle we had in early April. That movement was so abnormal (in BTC anyways) that I think it's likely we'll go down to at least test that price before buying significantly.
Scenarios:
1) We move sideways for a long time in the No Buy Zone then grind back upwards. (BULL, 50/50 CHANCE)
2) Rocket out above $600, little resistance, retest $590, strong support, Lambos on the Moon, yada yada yada. (STRONG BULL, LOW CHANCE)
3) Continuation Pattern forms and breaks down from No Buy Zone, then look for possibilities of Potential Reversals in the $475-ish area. This would allow us to establish a higher low and maintain convergence pattern towards an equilibrium. (BEAR, HIGH CHANCE)
4) Current leg of downtrend doesn't last, consolidation is short, drop straight through under $500 in the next couple days. From there, who knows tbh. Perhaps we bounce of the solid red line of long-term support, but it's too soon to say, could go even lower afterwards even. (STRONG BEAR, 50/50 CHANCE)
Bottom line, at this point the bears clearly have the floor, we'll see where they place it.
