ETH/USD Analysis – Bearish Breakdown Accelerates

ETH/USD Analysis – Bearish Breakdown Accelerates 🔻

ETH/USD has confirmed its breakdown below $3,100, reinforcing the strong bearish momentum. The price is now testing the lower trendline of the descending channel, a key decision point for either a bounce or a further breakdown.

📉 Key Observations (Bearish Control Strengthens):
1. Clear Breakdown Below $3,100
• This confirms the downtrend continuation with increased downside risk.
• Previous support ($3,100) is now acting as resistance.
2. Bearish Volume Spike
• Increased volume during the decline signals strong seller conviction.
• If volume remains high, ETH/USD could continue falling.
3. Test of Lower Channel Trendline (~$3,000 - $3,020)
• The price is now approaching the descending channel’s lower boundary.
• This is a make-or-break zone—either a short-term bounce or a stronger breakdown.
4. 20-Period EMA as Resistance (~$3,120 - $3,130)
• ETH/USD remains below the 20 EMA, which acts as dynamic resistance.
• Any bounce is likely to be capped at the EMA or previous support ($3,100).
5. Series of Strong Bearish Candles
• A clear bearish impulse move with little sign of buyer strength.
• Suggests the downtrend is accelerating with minimal retracement.

🔻 Bearish Scenario (More Likely)
• If ETH/USD breaks below the lower trendline ($3,000 - $3,020), expect further downside.
• Next major targets:
• $2,980 - $2,950 (psychological support)
• $2,900 - $2,880 (potential extension lower)

🟡 Bullish Scenario (Less Likely – Short-term Bounce)
• A temporary bounce from the lower trendline could happen.
• Key upside resistance levels:
• $3,100 - $3,120 (previous support, now resistance)
• $3,130 - $3,150 (20 EMA – strong rejection zone)

🔹 For a true trend reversal, ETH/USD must break and hold above $3,180, which is unlikely at this point.

🎯 Trading Strategy & Considerations

📌 Short Position Setup (High Probability Trade)
• Entry: Wait for a retest of $3,100 - $3,120 as resistance.
• Stop-loss: Above $3,150 - $3,180 (above 20 EMA & trendline).
• Targets:
• First TP: $3,020
• Second TP: $3,000
• Third TP: $2,950

📌 Long Setup (Risky – Only if a Strong Bounce Occurs)
• Entry: If price holds the lower trendline and reclaims $3,100.
• Stop-loss: Below $2,980
• Targets:
• First TP: $3,120
• Second TP: $3,150

📌 Final Takeaway:

✅ ETH/USD is in a strong downtrend, with a key test at $3,000 - $3,020.
✅ A break below this level could trigger a deeper selloff.
✅ Short trades remain the best risk-reward setup unless price reclaims $3,100.