Ethereum’s High Time Frame Outlook: Key Support Levels

Hello Traders,

in our second update for today, we are taking a closer look at Ethereum (ETH) on the higher time frame following the recent monthly close. The price has seen a strong bearish expansion from the $3,700 resistance level, pushing ETH into the 0.618 Fibonacci retracement zone, with the Value Area Low (VAL) of the high time frame range sitting just below it. While this is a technical trade location, there is currently no clear sign of a bounce, meaning we need to wait for further price development before considering any reversal scenarios.

If Ethereum continues its downward trajectory, the next key support sits at $1,196. This level will be crucial, as a bullish reaction here could increase the probability of a rotation back toward the highs. However, for now, price action remains rotational on the higher time frame, and the monthly trend is still in a clear downtrend with no immediate signs of reversal.


Key Technical Points to Consider

• ETH has rejected strongly from the $3,700 monthly resistance, leading to a bearish expansion into the 0.618 Fibonacci retracement zone.

• There is no clear bullish reaction yet, meaning traders should wait for further price action confirmation before considering a bounce.

• The next key support at $1,196 is critical—if price reaches this level and finds buyers, it could trigger a rotation back toward the highs.


Potential Scenarios & Conclusion


If Ethereum stabilizes within the 0.618 Fibonacci region and forms a strong bullish reaction, it could signal a potential short-term bounce. However, without confirmation, the risk of further downside remains, with $1,196 acting as the next major support level.

Traders should approach the market with caution, as the monthly trend is still bearish, and a clear reversal signal has yet to emerge. Until price action provides stronger confirmation, Ethereum remains in a rotational phase, requiring patience before determining the next high-probability trade setup.