Ethereum is showing significant weakness, with a sharp move down breaking below a major horizontal support/resistance zone, confirming a short-term bearish bias.
Volume: Moderate to high volume on the recent breakdown below support, suggesting that the move is accompanied by conviction from sellers. This is in contrast to the lower volume on the prior upward tests of the $3,200-$3,300 area in mid-December.
Price Action: The price has decisively broken below the $2,950-$3,000 area, which acted as key support after the December rally. The 4-hour chart shows moving averages crossing over bearishly, and the price is currently re-testing the underside of this former support as new resistance. A failure to reclaim this zone is a classic bearish continuation setup.
#ETH #ETHUSDT Cautious long
Entry: 2840-2900
Near resistance retest $3,100 - $3,140
Or break below $2,850 (confirmation of downward leg)
SL, DCA will be updated (Above the recent December high)
