ETH is standing at the edge of the cliff

ETHUSD seems to have stalled between $2,400 and $2,800 without any clear fundamental reason, but from a technical perspective, the explanation is quite straightforward. After breaking down from a massive triangle pattern, ETH bounced back as if nothing had happened. However, the rally has hit a wall right at the former trendline, what used to be solid support is now acting as resistance.

This could be a sign that ETH’s upside momentum is running out. If the price breaks below $2,300, it would likely confirm that the downtrend is just getting started and could leave ETH in a much weaker position.

Although the double top already played out and hit the 61.8% target (which might have led some to think the worst was over) there’s still a possible move toward the full 100% target, which sits just above $1,000, near the bottom edge of the triangle.

Putting fundamentals aside, this setup makes me lean heavily bearish on ETH if it drops below $2,300. We are in front of a potential 50% decline in ETH, which is amazing specially if the risk that you are assuming is less than 5%.

On the other hand, if the price breaks above the previous trendline, it would open the door to a new, more bullish scenario with the price heading to 3.500$. Another way to play this, is by buying at 2.400$ area, and setting up a stop loss under 2.150$, the risk benefit is amazing again, so don't worry about the direction of ETH, be aware of the trading opportunities that is giving us in any direction!