ETH Retests Bearish Order Block

Ethereum has been on a downward trend since the head and shoulders pattern formed in June. The break of the neckline led to a consistent pattern of lower highs and lower lows. Three black crows finally drove the price into the demand zone of $2,890.0, signalling a significant bearish pressure that dominated the market.

Following this decline, the price made a pullback towards the supply zone of $3,347.0, presenting an opportunity for optimal entry in the premium zone for shorting. This pullback was accompanied by the formation of three white soldiers, a bullish candlestick pattern indicating strong buying momentum. This suggests that while the overall trend has been bearish, there is notable buying interest at lower levels.

ETH Key Levels

• Demand Levels: $2,890.0, $2,590.0, $2,292.0
• Supply Levels: $3,450.0, $3,835.0, $4,085.0

What Are the Indicators Saying?

Since testing the demand level of $2,890.0, the Elder Ray Bull and Bear Power indicator have revealed a shift in market dominance from sellers to buyers. This indicator shows that bearish momentum is waning and bullish forces are gaining strength. Additionally, the Parabolic SAR (Stop and Reverse) has formed points beneath the candles, indicating an upward price trend and supporting the notion of a potential bullish reversal.

The price is expected to encounter resistance at the zone of $3,350.0. Should the buyers sustain the momentum that propelled the price to this level, there could be a significant chance of establishing a market reversal. A breakthrough above this resistance could confirm a trend reversal, while failure to do so might reinforce the bearish outlook.

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