Hello, this is Domic.
Looking at the ETH daily chart, the current picture is quite clear: the primary trend remains bearish, and the recent upside move should only be viewed as a technical rebound.
Price is still trading below both EMA34 and EMA89, with EMA34 having crossed below EMA89 and both moving averages sloping downward. This is a textbook setup of a medium-term downtrend, not a sideways phase or a basing process. As long as this structure holds, there is no solid basis to talk about a trend reversal.
On the upside, EMA34 around the 3,090 level is acting as a dynamic resistance. Price has repeatedly rebounded into this zone only to be pushed back down, indicating that sellers are clearly defending this area. The higher EMA89 further reinforces the idea that ETH still lacks the strength needed to shift the broader trend.
The quality of the current rebound also does not favor the bulls. Rebound candles are small and choppy, with lower highs forming, while volume shows no sign of strong capital inflows. In addition, this week falls into a holiday period, leading to reduced market liquidity, which makes price movements more sluggish and lacking breakout momentum.
Wishing everyone successful trading!
Looking at the ETH daily chart, the current picture is quite clear: the primary trend remains bearish, and the recent upside move should only be viewed as a technical rebound.
Price is still trading below both EMA34 and EMA89, with EMA34 having crossed below EMA89 and both moving averages sloping downward. This is a textbook setup of a medium-term downtrend, not a sideways phase or a basing process. As long as this structure holds, there is no solid basis to talk about a trend reversal.
On the upside, EMA34 around the 3,090 level is acting as a dynamic resistance. Price has repeatedly rebounded into this zone only to be pushed back down, indicating that sellers are clearly defending this area. The higher EMA89 further reinforces the idea that ETH still lacks the strength needed to shift the broader trend.
The quality of the current rebound also does not favor the bulls. Rebound candles are small and choppy, with lower highs forming, while volume shows no sign of strong capital inflows. In addition, this week falls into a holiday period, leading to reduced market liquidity, which makes price movements more sluggish and lacking breakout momentum.
Wishing everyone successful trading!
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Join my group to stay updated with the market in a clear, simple, and practical way
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.