Ethereum (ETH) is currently trading near a key resistance level at $2,880, with important support at $2,700. A breakout above this level is crucial and could push the price towards $3,000, while failure to do so may lead to a drop towards $2,500.
Key points:
1. Support and resistance levels:
- Resistance: $2,880 (upper channel limit).
- Support: $2,700, and if broken, the price may drop to $2,630 then $2,500-$2,520.
- A breakout above $2,880 forms a strong bullish signal targeting $3,000.
2. Contradictory technical indicators:
- RSI at 62.67 (bullish signal but not in overbought territory yet).
- MACD shows a slowdown in momentum, with lines converging, which could signal a short-term pullback if the lines cross bearishly.
3. Warnings of momentum decline:
- Despite maintaining the bullish channel structure, repeated rejections at $2,880 indicate difficulty in sustaining bullish momentum.
Market outlook:
- Bullish scenario: A breakout above $2,880 with high trading volume could trigger a move towards $3,000-$3,120.
- Bearish scenario: A break below $2,700 could lead to a test of $2,500, especially with weak momentum indicators.
Traders are advised to closely monitor momentum indicators and support/resistance levels to confirm the next trend.#TradingSignal