Ethereum Experiences Bearish Shift After Reaching Key Resistance

Ethereum has demonstrated impressive growth since November, establishing a consistent market structure that propelled the price to the critical resistance level at $4,093.0. This marked a significant milestone, reflecting the strength of the bullish trend before meeting strong resistance at the supply zone.

 

A double top pattern emerged after testing the supply zone at $4,093.0, indicating a potential reversal. This pattern highlighted buyers’ inability to sustain upward momentum, leading to a price decline. The pullback swept through multiple swing lows before reaching the support zone of $3,086.0.

Ethereum Key Levels

Demand Levels: $3,086.0, $2,739.0, $2,430.0
Supply Levels: $3,547.0, $4,013.0, $4,093.0

Indicator Analysis

• Smoothed Heikin Ashi Candles:
  Following the formation of the double top pattern, the Smoothed Heikin Ashi candles turned red, signaling a shift in momentum. The price has now fallen below the Smoothed Heikin Ashi candles, reinforcing bearish sentiment in the market.
• Awesome Oscillator:
  The Awesome Oscillator shows growing bearish dominance as its reading dips below the zero line. This further confirms the increasing pressure from sellers, suggesting a potential downward trend continuation.

Ethereum’s recent pullback underscores the strong resistance at $4,093.0 and the bearish shift in market dynamics. Traders are closely watching the demand zone at $3,086.0 for signs of stabilization or a possible continuation of the decline. With indicators leaning bearish, short-term downward pressure remains likely.

 

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