Updated ETH/USD Analysis – Bearish Momentum Confirmed ETH/USD is still in a strong downtrend, with price action respecting the descending channel and making lower highs and lower lows.
📉 Key Observations (Bearish Bias Strengthened):
1. Rejection at $3,170 - $3,180 (Channel Resistance)
• Price failed to break the upper trendline and got strongly rejected.
• This confirms that the descending channel is still intact.
2. Break Below $3,100 (Critical Support Level)
• ETH/USD broke below $3,100, a key psychological and technical level.
• A retest of $3,100 as new resistance would confirm further downside.
3. Trading Below the 20-Period EMA (Bearish Confirmation)
• The price is consistently staying below the 20 EMA, reinforcing bearish control.
• The EMA is now acting as resistance (~$3,130 - $3,140).
4. Volume Increase on the Decline
• Growing selling pressure confirms that bears remain in control.
• If volume continues to rise, ETH/USD could see faster declines.
🔻 Bearish Scenario (More Likely)
• ETH/USD remains below the 20 EMA and $3,100 = bearish continuation likely.
• Next downside targets:
• $3,050 - $3,030 (short-term support)
• $3,000 - $2,980 (lower trendline of the descending channel)
• Below $2,980 = possible sharper decline
🟡 Bullish Scenario (Less Likely)
• A bounce at $3,100 - $3,020 could cause a temporary move up.
• Key resistance levels:
• $3,130 - $3,140 (20 EMA)
• $3,170 - $3,180 (descending channel resistance)
🔹 For a bullish reversal, ETH must break and hold above $3,180—which seems unlikely now.
🎯 Trading Strategy & Considerations
📌 Short Position Setup (High Probability Trade)
• Entry: Look for a retest of $3,100 - $3,120 as resistance.
• Stop-loss: Above $3,150 - $3,180 (above 20 EMA & trendline).
• Targets:
• First TP: $3,050
• Second TP: $3,000
• Third TP: $2,950
📌 Long Setup (Low Probability Trade)
• Entry: Only consider if ETH/USD breaks and holds above $3,180.
• Stop-loss: Below $3,100
• Targets:
• First TP: $3,200
• Second TP: $3,250
📌 Final Takeaway:
✅ ETH/USD remains in a strong downtrend.
✅ Break of $3,100 confirms further downside risk.
✅ Short trades have better risk-reward setups than longs.
