ETH/USD Analysis – Bearish Breakdown Accelerates
2025-02-02
Category: None

ETH/USD Analysis – Bearish Breakdown Accelerates 🔻

ETH/USD has confirmed its breakdown below $3,100, reinforcing the strong bearish momentum. The price is now testing the lower trendline of the descending channel, a key decision point for either a bounce or a further breakdown.

📉 Key Observations (Bearish Control Strengthens):
	1.	Clear Breakdown Below $3,100
	•	This confirms the downtrend continuation with increased downside risk.
	•	Previous support ($3,100) is now acting as resistance.
	2.	Bearish Volume Spike
	•	Increased volume during the decline signals strong seller conviction.
	•	If volume remains high, ETH/USD could continue falling.
	3.	Test of Lower Channel Trendline (~$3,000 - $3,020)
	•	The price is now approaching the descending channel’s lower boundary.
	•	This is a make-or-break zone—either a short-term bounce or a stronger breakdown.
	4.	20-Period EMA as Resistance (~$3,120 - $3,130)
	•	ETH/USD remains below the 20 EMA, which acts as dynamic resistance.
	•	Any bounce is likely to be capped at the EMA or previous support ($3,100).
	5.	Series of Strong Bearish Candles
	•	A clear bearish impulse move with little sign of buyer strength.
	•	Suggests the downtrend is accelerating with minimal retracement.

🔻 Bearish Scenario (More Likely)
	•	If ETH/USD breaks below the lower trendline ($3,000 - $3,020), expect further downside.
	•	Next major targets:
	•	$2,980 - $2,950 (psychological support)
	•	$2,900 - $2,880 (potential extension lower)

🟡 Bullish Scenario (Less Likely – Short-term Bounce)
	•	A temporary bounce from the lower trendline could happen.
	•	Key upside resistance levels:
	•	$3,100 - $3,120 (previous support, now resistance)
	•	$3,130 - $3,150 (20 EMA – strong rejection zone)

🔹 For a true trend reversal, ETH/USD must break and hold above $3,180, which is unlikely at this point.

🎯 Trading Strategy & Considerations

📌 Short Position Setup (High Probability Trade)
	•	Entry: Wait for a retest of $3,100 - $3,120 as resistance.
	•	Stop-loss: Above $3,150 - $3,180 (above 20 EMA & trendline).
	•	Targets:
	•	First TP: $3,020
	•	Second TP: $3,000
	•	Third TP: $2,950

📌 Long Setup (Risky – Only if a Strong Bounce Occurs)
	•	Entry: If price holds the lower trendline and reclaims $3,100.
	•	Stop-loss: Below $2,980
	•	Targets:
	•	First TP: $3,120
	•	Second TP: $3,150

📌 Final Takeaway:

✅ ETH/USD is in a strong downtrend, with a key test at $3,000 - $3,020.
✅ A break below this level could trigger a deeper selloff.
✅ Short trades remain the best risk-reward setup unless price reclaims $3,100.