ETH/USD Daily — Support Bounce Setup in a Strong Downtrend
Chart Analysis:
Market Structure:
ETH is clearly in a bearish trend on the daily timeframe. Lower highs and lower lows are intact after a sharp rejection from the major supply zone around 3,300–3,400 (yellow zone).
Impulsive Sell-Off:
The recent move down is strong and aggressive, suggesting capitulation-style selling rather than a slow grind. This often precedes at least a technical relief bounce.
Key Support Zone (Red): ~1,900–2,000
Price has tapped into a well-defined demand/support area, where buyers previously stepped in. The long lower wicks here hint at buying interest and absorption.
Proposed Entry:
The marked entry is based on a support reaction, not a trend reversal. This is a counter-trend long, so it’s tactical, not positional.
Target Zone (Green): ~2,450–2,550
This zone aligns with:
Prior structure support → resistance flip
Likely liquidity resting above
Mean reversion after an extended drop
Bias & Expectations:
Short-term: Bullish relief bounce toward the green zone
Medium-term: Still bearish unless ETH reclaims and holds above ~2,600–2,700
Expect high volatility—clean V-shaped recoveries are rare in this context
Risk Note:
If price loses the 1,900 support decisively, the setup is invalidated and opens the door for continuation toward lower psychological levels.
📌 Summary:
This chart shows a high-risk, counter-trend bounce play off major daily support, targeting a logical resistance zone above. Good for disciplined traders, not for blind bottom-catching.
