In this idea I want to point out some very important levels on ETH/USD pair.
We just closed daily candle below strong support of $4000, which means it has just turned to very strong daily resistance. If week closes below $3800, it automatically becomes weekly resistance. That means that it will take days/weeks to break it in case we're bullish, which we're not.
Next important level that could start a correction is $3400 - $3500. Price could easily bounce from there.
Next support at $3100 doesn't seem strong enough to me, it may affect the price but I don't think there will be enough volume.
And the last local support level of $2800 looks very good to me. The price can bounce exactly from that point and start weekly correction.
I will pay attention to how price reacts on each of these levels. To me the volume will be the main factor.
We just closed daily candle below strong support of $4000, which means it has just turned to very strong daily resistance. If week closes below $3800, it automatically becomes weekly resistance. That means that it will take days/weeks to break it in case we're bullish, which we're not.
Next important level that could start a correction is $3400 - $3500. Price could easily bounce from there.
Next support at $3100 doesn't seem strong enough to me, it may affect the price but I don't think there will be enough volume.
And the last local support level of $2800 looks very good to me. The price can bounce exactly from that point and start weekly correction.
I will pay attention to how price reacts on each of these levels. To me the volume will be the main factor.