Ethereum ($ETH /USDT) recently experienced a sharp reversal after reaching a local high of $2,879.22. That move marked the top of a short-term bullish breakout, but the rally was aggressively sold off, resulting in a rapid 13% drop to intraday lows around $2,436. This created a wide bearish candle with significant volume, indicating panic selling or heavy profit-taking. The chart now shows price stabilizing around $2,519, attempting to bounce from the $2,500 psychological level.
Support at $2,436 (near the low of June 12) is key. It aligns with a prior demand zone, and the fact that buyers have stepped in suggests that market participants are still willing to defend that area. However, the order book is heavily skewed to the sell side (90.89%), showing strong short-term resistance and caution from the market. Despite this, overall structure still shows higher lows since the June 3 bottom at $2,381, which means this may just be a pullback in a broader uptrend.
Volume is elevated, signaling that this is a reaction zone. If ETH can hold above $2,500 and reclaim $2,575, a short-term reversal is possible. MACD and RSI are likely heading toward neutral or oversold levels, suggesting a setup for a bounce if buying resumes. If price breaks below $2,436, more downside is possible toward $2,381 again or lower.
Long Trade Setup:
Entry Zone: $2,480 – $2,525
Stop Loss: $2,395 (below major support at $2,436 and local bottom $2,381)
Trade Type: Swing trade (short-to-medium term)
Targets Based on Chart Structure:
1. Target 1: $2,685 – Resistance zone from prior consolidation before the big drop
2. Target 2: $2,775 – Recent breakdown area and 24h high, strong resistance
3. Target 3: $2,879 – Previous peak and key level to break for bullish continuation
This trade offers a potential 2–3.5x reward/risk ratio if the bounce holds. Watch volume and reclaim of $2,575 as confirmation signals. If ETH loses $2,436, it may revisit deeper levels around $2,300–$2,350 before finding firm support again.
