- Ethereum faces bearish pressure, testing key support at $1,930 as OBV trends lower, signaling reduced buying interest.
- Resistance at $3,000 and $4,000 remains crucial; ETH must stabilize above support to prevent a deeper price decline.
- Historical patterns suggest $880 as a potential bottom if ETH breaks lower, with market sentiment shaping its next move.
As Ethereum (ETH) tests support levels, bearish pressure has intensified. With ETH currently selling at $1,930.12, it has dropped 4.45%, indicating continued market turbulence. Although taking profits at first could have been the best course of action, IncomeSharks pointed out that the current approach is holding.
Source: IncomeSharks
The on-balance volume (OBV) remains at support, though the broader chart signals a grim outlook. Despite this, such negative patterns often precede significant buying opportunities. The final judgment on this phase will only become clear by 2026.
Key Resistance and Support Levels Shape ETH’s Trajectory
The ETH price chart on Coinbase reveals a downward trend with multiple resistance and support zones. Notably, resistance levels stand at $3,000 and $4,000, with these zones marking past reversal points. A previous breakout spurred a rally, yet the momentum faltered.
ETH now trades below the recent buying zone, identified around the $2,200, which signals rising bearish momentum. The dotted blue trendline further outlines persistent bearish pressure. Meanwhile, OBV trends lower, reflecting decreasing trading volume that correlates with ETH’s price decline.
Furthermore, the chart suggests that reactions at these resistance zones have historically resulted in reversals. A recovery could see ETH retesting these resistance levels. However, the immediate focus remains on ETH stabilizing above its current support to prevent further downside. The grey curved projection indicates potential movement, though its realization hinges on upcoming market dynamics.
Deep Dive: Testing the Cycle Low
Heisenberg adds a broader perspective, emphasizing that the real rally might only commence after a deeper decline. His analysis identifies Ethereum’s historical price behavior, highlighting the significant $4,868 ATH and the subsequent long accumulation phase. ETH recently broke out of this phase in early 2024, only to retrace and test the lower support at $2,146. A breakdown here could push prices toward the next major support level around $880.
Source: Heisenberg
Historical patterns suggest that the $880 zone could serve as the ultimate bottom. This level previously marked significant price action during 2022. Should ETH stabilize near this area, it could set the stage for a potential reversal. However, breaking below this level might prolong bearish momentum. Market sentiment and trading volume will critically influence this trajectory.
