Ethereum’s recent crash has triggered some panic on the intraday trading, though its weekly market structure remains bullish. There is still hope for the bulls despite correcting by almost 20% in a week.
Following the past week’s drops, which came after witnessing a steady increase for a month and a half, Ethereum saw a notable reduction last week and reset back to the $3.1k level, where it initiated a major surge in November.
Surprisingly, that level provided support and the price recovered briefly to a current trading level of $3,350. The bulls are trying to push back but their commitments are not strong enough to bring them back in control.
Looking at the price actions from where it initiated a major correction in March, Ethereum appeared to be forming a strong bullish (inverse head and shoulder) pattern on the weekly timeframe. Although the right shoulder pattern is yet to form.
A complete formation of this pattern should trigger a massive explosion as soon as the price breaks out of the crucial $4k region – a barrier for the bulls in the past months – considered as the neckline of the pattern from a macro scale.
Currently, trading might look weak on the daily but Ethereum’s broader outlook remains bullish from a long-term perspective. A drop below last week’s low could provide more discount for the bulls before bouncing back stronger on a daily scale.
ETH’s Key Level To Watch
Source: Tradingview
Starting the first day of the week a bit strong, Ethereum is now facing the $3,500 level that broke down last week. A daily close above it could allow more recovery to $3,700 and $3,830 before breaking out of the key $4,094 resistance.
Aside from $3,255 and the holding $3,100 support, the $3k level is the main support to watch for more breakdowns along with the $2,810 level.
Key Resistance Levels: $3,500, $3,830, $4,094
Key Support Levels: $3,255, $3,015, $2,810
- Spot Price: $3,340
- Trend: Bearish
- Volatility: High
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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