#EthereumSecurityInitiative

ETH is showing signs of exhaustion after the recent recovery, with price action forming a potential local top near $2,500. The high RSI (74.17) indicates overbought conditions, while declining volume suggests that bullish momentum is weakening. The current structure still maintains an upward trend but caution is needed at these levels.

💰 Technical Overview:

ETH is undergoing its first significant correction (-4.50%) after a strong uptrend, testing the $2,473 level. Positive MACD divergence (217.45 versus signal 168.00) indicates latent strength, but the narrow BB width (13.06%) suggests a potential upcoming consolidation. Weak ADX (3.4) indicates a potential weakening of the trend.

📈 Trade Setup:

• Major support area at $2,425 aligns with S1 ($2,420)

• Main resistance cluster between $2,542-$2,578

• Risk/reward ratio favors waiting for a retest of support before opening new positions

• A tight stop loss below $2,367 (S2) is recommended for any long positions

🎯 Strategic Outlook:

The current setup indicates a potential short-term consolidation phase. Traders should pay attention to:

1. A bounce off the support area $2,420-$2,425

2. Volume confirmation in any breakout attempt

3. RSI dropping below 70 to remain healthier

💡 Action:

Consider increasing long positions near the support level $2,425 with strict risk management. The current risk/reward ratio does not favor speculative positions until price action shows a clear direction. Wait for volume confirmation before increasing position size.