📊 Market Overview
$ETH recently experienced a sharp pullback after failing to sustain momentum near a key resistance zone. The rejection triggered accelerated selling pressure, pushing price into lower intraday support levels. This move followed an extended rally phase where short term traders were heavily positioned on the long side. Once resistance held firm, long liquidations amplified the downside move.
📉 Technical Structure
On lower timeframes, $ETH formed a clear lower high before breaking minor support, confirming short term weakness. The breakdown led to a cascade effect as stop losses were triggered below recent swing lows. RSI, which had been near overbought territory, has now cooled significantly, signaling momentum reset. Bollinger Bands expanded during the drop, reflecting volatility expansion rather than gradual distribution. Immediate support now sits near the latest demand zone where the prior impulse originated. A failure to hold this level could extend the correction toward the next higher timeframe support.
📈 Strategic Outlook
The dump appears primarily technical rather than fundamentally driven. Liquidity sweeps, profit taking, and leverage flushes are common during strong trend phases. Ethereum remains structurally intact on higher timeframes unless major support levels break decisively. If buyers defend current demand and reclaim broken resistance with strong volume confirmation, momentum can shift back toward upside continuation. However, traders should avoid emotional entries during volatility spikes. Watching for higher low formation and volume expansion will provide clearer confirmation of whether this is a healthy correction or the beginning of a deeper retracement.
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