Ethereum

bullish

Reversal

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Ethereum’s bearish market structure and magnetic zone below $2.9k indicate potential further losses.</li> 
 <li>Despite a drop in network activity, smart money activity signals a bullish trend.</li> 
</ul>  
<p>Ethereum [ETH] has been trading at the key support level of $2.9k, a level it previously visited on July 5th. In the weeks that followed, the price was driven up to $3.5k by bullish activity, but then faltered.</p> 
<h2 id="market-indicators-and-volatility">Market Indicators and Volatility</h2> 
<p>The question now is whether we can anticipate a bounce back to the $3.5k mark. Although network activity has been declining in recent months, smart money activity has been emitting bullish signals. However, technical indicators continue to predict a bearish trend.</p> 
<p>As of the time of reporting, Ethereum was trading at $2916, exhibiting a bearish market structure on the daily timeframe. If the price dips below the $2.9k level, the next significant support zone lies at $2.6k. Current price action suggests that such a dip is feasible.</p> 
<p>The daily RSI is just above oversold conditions and the OBV has been on a steady decline since June. These factors together suggest that further losses are likely. The $2.9k support is also the 61.8% Fibonacci retracement level, which has been defended since April, indicating that there is a fair chance that it will be defended again.</p> 
<h2 id="liquidation-levels-and-possible-reversal">Liquidation Levels and Possible Reversal</h2> 
<p>In the past six weeks, the cluster of liquidation levels at the $2.8k zone has grown. Prices are often drawn to these liquidity pools, making them magnetic zones. Although $2.9k is a strong support, it is highly probable that the $2740-$2800 region will be reached.</p> 
<p>A bullish reversal from this point is anticipated, but traders should be prepared for volatility in the lower timeframe. A couple of days of trading to establish $2.7k-$2.8k as a support, combined with a surge in demand, could motivate swing traders to go long.</p> 
<p>Please note that the information provided does not constitute financial, investment, trading, or any other type of advice and should be considered solely as the writer’s opinion.</p>

Ethereum’s Downturn Below $2.9K: An Analysis of Why This Isn’t a Cause for Alarm

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CoinEagle.com

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