Ethereum faces a decisive moment as it lies to an important resistance zone. After several failed attempts to break higher, the price action shows signs of weakness. The following movement will be essential to determine if Ethereum can change its bearish structure or continue its trend down macro.
Ethereum (Eth) It is currently testing a key resistance area, and the reaction here could establish the tone for the next main movement. Despite the recent rally, multiple technical factors suggest that Ethereum remains vulnerable to a greater disadvantage if this resistance is maintained. Next, we break down the key confluences in the game, the critical support to see and the necessary conditions to turn the upward market structure.
Key technical points
- Ethereum is testing resistance at 0.618 Fibonacci, VWAP SR and the main level of daily SR.
- The key support is around $ 1,055, a critical level of the High Term that must be maintained for a bullish structure to form.
- A failure to maintain risk risks a low swing, confirming the continuation of the daily bassist structure.
Detailed technical discussion
The current commercial location of Ethereum is in a confluence of important resistances: the 0.618 fibonacci decline, the VWAP supply resistance and a significant daily horizontal level. Multiple recent daily candles have failed to close above this area, underlining persistent weakness despite the demonstration during the past week.
The key support for monitoring lies in around $ 1,055, aligning with a high -frame weekly support level. If Ethereum tried this area again and holds, he could form a lower sign, an early sign of resistance. However, a failure to maintain $ 1,055 would open the door to break the previous swing, confirming a new bass and extending the trend down macro within the daily period.
From a broader perspective, Ethereum’s commercial location is extremely critical. A rejection here increases the probability of the continuation continuous, reinforcing the continuous pattern of the lower ups and downs and the lowest minimums.
Only a strong support reaction to $ 1,055, backed by the increase in volume and a decisive breakdown above the current lower height, could turn the upward structure and suggest an important change of tendency.
What to expect in the next price action
If Ethereum does not break above the current resistance zone, we can expect another lowest maximum to be confirmed, which probably leads to a new test of the $ 1,055 region. A failure in this support could trigger a deeper sales sale, making new minimums and continuing the bearish structure.
However, if Ethereum finds a strong support to $ 1,055, followed by a volume -backed rally and a breakdown on resistance, the market could turn, which can lead to a new higher and structural change on the rise.