Is $2,220 the Next Key Support Level for Ethereum?

5. Sept.

Technical Analysis:

1. Current Price Below EMAs:

• The price is currently trading below the EMAs, signaling a bearish sentiment. This alignment suggests that the bears are in control, with momentum pushing the price lower.
  
• The bearish structure is reinforced by the fact that the price broke and retested a key support level, now acting as resistance. This indicates a strong bearish momentum as the price struggles to reclaim the $2,950 level.
  

2. Key Levels to Watch:

• Bearish Scenario: The next significant support level to watch is around $2,220. This zone has previously acted as a major liquidity area, and the price could be drawn towards it. A bounce at this level is possible, especially since this zone aligns with a high liquidity level that may attract buyers.
  
• Potential Bounce: There is also the possibility of a rebound at the current price level, as it sits at the bottom of the channel. Traders should be aware of the potential for a short-term bullish move if buyers step in to defend this level.
  
• Bullish Scenario: For the price to turn bullish, it needs to break above $2,950 and create a structure break (higher high). If the price manages to break this resistance, the next target would be around $3,900.
  

3. Momentum and Crossover:

• The momentum is currently below the zero line, which adds to the bearish outlook in the short term. However, if momentum begins to shift upwards, it could act as a signal of a potential reversal.
  

4. Bearish vs. Bullish Outlook:

• Bearish: As the price remains below the EMAs, the bearish outlook remains dominant. Traders should watch for a retest of $2,220, where a potential bounce could occur.
  
• Bullish: To shift to a bullish scenario, the price needs to break above the $2,950 resistance. Confirmation of a higher high would strengthen the case for a rally toward $3,900.
  

5. Conclusion:

• ETH/USDT is currently in a bearish structure, with the price sitting below the EMAs and facing resistance at $2,950. The next significant support level is $2,220, which could attract buying interest.
  
• However, a potential rebound from the current price level is possible as the price approaches the lower boundary of the range. Traders should monitor the key levels of $2,950 for a potential breakout to the upside or $2,220 for a possible bounce off the support. Momentum indicators also suggest a bearish continuation unless a shift in momentum occurs.
  

Are you seeing the same opportunities? Drop your thoughts and insights in the comments, and let’s work together to navigate this market effectively.

_________________________________________________________________
The information and publications within the 3Commas TradingView account are not meant to be and do not constitute financial, investment, trading, or other types of advice or recommendations supplied or endorsed by 3Commas and any of the parties acting on behalf of 3Commas, including its employees, contractors, ambassadors, etc.