Updated ETH/USD Analysis – Bearish Momentum Confirmed 
2025-02-02
Category: None

ETH/USD is still in a strong downtrend, with price action respecting the descending channel and making lower highs and lower lows.

📉 Key Observations (Bearish Bias Strengthened):
	1.	Rejection at $3,170 - $3,180 (Channel Resistance)
	•	Price failed to break the upper trendline and got strongly rejected.
	•	This confirms that the descending channel is still intact.
	2.	Break Below $3,100 (Critical Support Level)
	•	ETH/USD broke below $3,100, a key psychological and technical level.
	•	A retest of $3,100 as new resistance would confirm further downside.
	3.	Trading Below the 20-Period EMA (Bearish Confirmation)
	•	The price is consistently staying below the 20 EMA, reinforcing bearish control.
	•	The EMA is now acting as resistance (~$3,130 - $3,140).
	4.	Volume Increase on the Decline
	•	Growing selling pressure confirms that bears remain in control.
	•	If volume continues to rise, ETH/USD could see faster declines.

🔻 Bearish Scenario (More Likely)
	•	ETH/USD remains below the 20 EMA and $3,100 = bearish continuation likely.
	•	Next downside targets:
	•	$3,050 - $3,030 (short-term support)
	•	$3,000 - $2,980 (lower trendline of the descending channel)
	•	Below $2,980 = possible sharper decline

🟡 Bullish Scenario (Less Likely)
	•	A bounce at $3,100 - $3,020 could cause a temporary move up.
	•	Key resistance levels:
	•	$3,130 - $3,140 (20 EMA)
	•	$3,170 - $3,180 (descending channel resistance)

🔹 For a bullish reversal, ETH must break and hold above $3,180—which seems unlikely now.

🎯 Trading Strategy & Considerations

📌 Short Position Setup (High Probability Trade)
	•	Entry: Look for a retest of $3,100 - $3,120 as resistance.
	•	Stop-loss: Above $3,150 - $3,180 (above 20 EMA & trendline).
	•	Targets:
	•	First TP: $3,050
	•	Second TP: $3,000
	•	Third TP: $2,950

📌 Long Setup (Low Probability Trade)
	•	Entry: Only consider if ETH/USD breaks and holds above $3,180.
	•	Stop-loss: Below $3,100
	•	Targets:
	•	First TP: $3,200
	•	Second TP: $3,250

📌 Final Takeaway:

✅ ETH/USD remains in a strong downtrend.
✅ Break of $3,100 confirms further downside risk.
✅ Short trades have better risk-reward setups than longs.