ETHEREUM VS US DOLLAR โ Trend Break or Continuation?
๐ง Market Structure & Context
This chart clearly demonstrates three distinct phases of price action:
1. Accumulation Phase (~$2,170โ$2,280):
A period of sideways consolidation with relatively low volatility.
Price traded in a tight range, building up liquidity.
2. Breakout & Trend Reversal (~$2,280โ$2,680):
A clean breakout led to a rapid rally toward the $2,680 supply zone.
The rejection from this level formed the recent swing high, followed by a series of lower highs.
3. Bearish Breakdown & Current Phase (~$2,680โ$2,195):
Price broke key support and initiated a strong downward trend, confirmed by the descending trendline and consistent lower lows.
A recent bounce from the $2,160โ$2,195 support zone is underway, testing prior resistance.
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๐ Key Technical Features
Trendline Resistance: Price is testing a descending resistance line that has capped all recent bounce attempts. A breakout here could trigger a short-term trend reversal.
Rejection Zone (~$2,280โ$2,300): Strong horizontal resistance coupled with the trendline. Watch this confluence zone for a reaction โ itโs crucial for bulls to reclaim.
Demand Zone Highlighted (~$2,160โ$2,195): This level has provided support multiple times and forms the current key structure floor. A clean break below could invite a larger correction.
Potential Reversal Pattern: The blue curved arrow suggests an inverse head and shoulders or rounded bottom formation in development โ signaling possible bullish intent.
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๐ฎ Scenario Forecast
1. Bullish Case (if price breaks above $2,280โ$2,300):
Target 1: $2,360 (minor resistance)
Target 2: $2,440โ$2,480 (previous supply zone)
Confirmation would come from a close above the trendline + horizontal resistance
2. Bearish Case (rejection from $2,280โ$2,300 zone):
Price likely retests $2,195
A break below this support opens downside toward $2,100 and $2,050
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๐ Unique Insights
The use of Ichimoku Cloud adds confluence to resistance zones.
The highlighted zones of supply and demand are well-placed and visually clean.
