Ethereum: The Solid Bearish Signal - True or Fake?

The market moved sideways in the price channel between 200.00 and 153.00 levels. Yesterday, we could see the attempt to break the support zone and move lower. The strong bearish candle was closed outside of the price channel. It is a bearish signal.

We have the bearish candle, which is not far from a hammer - it is a reversal candlestick pattern. Also, we have to take into consideration that RSI reached the oversold zone, and it tells us about the oversold market conditions. MACD histogram is below the signal line, and it will be able to confirm a possible reversal by a solid signal.

In spite of the bearish signals from DMI, MACD lines, and the breakout, we should be ready to see a fake breakout and the back movement to the borders of the price channel. If so, it will be possible to buy based on the 1st bullish candle with the close price above 160.00 level. Stop orders for such long positions should be placed below the local swing low. The main target will be the upper line of the price channel.

For confirmation of the further falling, we will need to see the breakout below the low price of the bearish candle, which broke the support zone.