ETH drops to trendline - what happens next?
Ethereum has seen a sharp decline after it's 4th push into the supply zone since the 23rd.
We've now reached an establish demand zone in the high 3800s and seen a small bounce and consolidation just above this zone.
Price is also touching it's lower trendline after a brief wick below.
Downside momentum is strong and this consolidation could be sellers taking a breather before gathering strength and pushing price below both the trendline and demand zone - if this were to happen I would expect the momentum to drive price down to the lower support level around 3760.
However we do have this demand zone and trendline as support and RSI is low - below 23 at time of writing - so a bounce could be imminent, and our target would be the Point of Control indicated on the volume profile.
This is not financial advice. Allocate your capital responsibly.
Comment your ideas below. Do you think we break below this demand zone for a continuation of downside momentum? Or will we see a bounce from this key area?
We've now reached an establish demand zone in the high 3800s and seen a small bounce and consolidation just above this zone.
Price is also touching it's lower trendline after a brief wick below.
Downside momentum is strong and this consolidation could be sellers taking a breather before gathering strength and pushing price below both the trendline and demand zone - if this were to happen I would expect the momentum to drive price down to the lower support level around 3760.
However we do have this demand zone and trendline as support and RSI is low - below 23 at time of writing - so a bounce could be imminent, and our target would be the Point of Control indicated on the volume profile.
This is not financial advice. Allocate your capital responsibly.
Comment your ideas below. Do you think we break below this demand zone for a continuation of downside momentum? Or will we see a bounce from this key area?
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