Ethereum’s Crucial Crossroad: Is a Major Move Imminent?Introduction:
Ethereum is at a pivotal point as it approaches significant support and resistance levels. The weekly and daily charts provide crucial insights into potential price movements. This analysis explores the scenarios that could unfold based on current market conditions and technical patterns.
Weekly Time Frame Analysis:
Ethereum has been strongly rejected from the significant supply zone at $4000 once again. In the coming week, there is potential for the price to retest the curved support line it has held above for over a year. A clear double top pattern is visible in the weekly time frame. If this week’s candle closes below $2900, I expect a price correction down to $2500. As seen in the chart, during the bear market of 2022, a break below $2500 led to panic selling, making this level a critical support area once again.
Daily Time Frame Analysis:
In the daily time frame, Ethereum has broken its ascending curved line, which has been in place since October 2023. If the daily candle closes below $2913, there is potential for a decline to $2157. This target corresponds with the activation of the double top pattern upon breaking the $2913 support. The increased volume following the break of the curved line further confirms the bearish trend. Additionally, the RSI is entering the oversold zone, which could trigger panic selling and a new wave of downward pressure.
Ethereum's Two Scenarios:
Given the developments in the higher time frames, I foresee two main scenarios for Ethereum, with the $2880 support level playing a crucial role in both.
Bullish Scenario:
If the price finds support at $2880 and forms a strong green candle, there is potential for a temporary rise to the green trend line and a pullback to the $3370 resistance. At that point, I will look for a setup to enter a short position.
Bearish Scenario:
If the price decisively breaks through $2880 with a strong candle, it is likely to pull back to this level before continuing its decline towards $2300.
Conclusion:
Ethereum’s price action in the coming days will be crucial in determining its medium-term trend. The $2880 support level is key to both bullish and bearish scenarios. Traders should closely monitor price movements around this level to make informed decisions. Stay vigilant and be prepared for potential market shifts.
