Ethereum at Critical Retest – Pullback or Breakout?

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Ethereum saw a sharp rally followed by a steady climb inside a rising channel. Recently, price broke below the channel’s lower boundary, signaling potential weakness. Now, ETH is retesting the broken trendline, which could be a classic pullback scenario.

Scenario 1 – Bearish Continuation:

If ETH fails to reclaim the channel and rejects around $3,600–$3,650, selling pressure may return.

Potential targets: $3,400 → $3,250 and, in extension, $3,050.

RSI is recovering from oversold levels but still below midline, hinting at possible limited upside before another drop.


Scenario 2 – Bullish Reclaim:

A daily close above $3,650 with strong volume would invalidate the breakdown and suggest a false break.

In that case, ETH could re-enter the channel and aim for $3,850 and the upper boundary near $4,050.


Risk Management:

Bearish entry: Wait for rejection candle on retest → SL above $3,700.

Bullish entry: Wait for confirmed breakout above $3,650 with volume → SL below $3,550.

Penafian

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