ETH Tests Support – Is This the Beginning of a Rebound?

📉 Market Structure

We see a descending channel, bounded by two black trend lines.

Upper Boundary: ~$4,700

Lower Boundary: currently around $3,700, representing strong dynamic support.

The price is currently hovering slightly above the lower edge of the channel, suggesting a possible rebound, but the market remains in a medium-term downtrend.

🔍 Support and Resistance Levels

Support:

$3,770 → currently being tested, crucial in the short term.

$3,643 → next strong support from previous lows.

$3,453 → last line of defense against a steeper decline.

Resistance:

$3,889 → closest resistance, current local ceiling.

$4,041 → strong resistance resulting from prior consolidation.

USD 4.265 → a line that, if broken, could signal a change in the medium-term trend.

📊 Technical Indicators
Stochastic RSI

Located near the oversold zone (below 20), with a slight upward curve.

🔹 Signal: Potential upside move (bounce) in the short term if the %K and %D lines cross upward.

MACD

The MACD line is slightly below zero, but is starting to curve upward and may soon cross the signal line.

🔹 The histogram is starting to decline on the negative side – this is often an early bullish signal (possible change in momentum).

⚖️ Scenarios
🔹 Bullish

If ETH holds above USD 3,770 and the Stoch RSI confirms the rebound, a possible move towards:

3,889 → USD 4,041 → USD 4,265.

A break above USD 4,265 could open the way to USD 4,500+ (upper band of the channel).

🔻 Bearish

Loss of support at USD 3,770 → a signal of weakness.

Then the next downside targets:

USD 3,643, then USD 3,453.

If USD 3,453 breaks, possible tests of the lower band of the channel – even around USD 3,300.

🧭 Summary

Main trend: downward (descending channel).

Short-term bias: neutral-bullish (potential for a rebound from support).

Key level to watch: USD 3,770 – maintaining this level could trigger a rebound, loss = risk of a steeper decline.