ETHUSDT - Bearish Continuation Within a Descending StructureMarket Overview:
Ethereum (ETH) remains in a well-defined downtrend, consistently forming lower highs and lower lows. The market structure remains bearish, with price respecting the descending trendline. Currently, ETH is showing signs of a corrective move within this broader downtrend, approaching a key Fair Value Gap (FVG) region that could act as a supply zone before a potential continuation to the downside.
Technical Insights:
- The long-term downtrend is intact, as demonstrated by the trendline resistance capping any bullish attempts at recovery. Until price successfully breaks above this trendline with strong momentum, the bearish outlook remains dominant.
- A major support level has been tested multiple times, indicating strong demand in this area. However, repeated retests of support without significant bullish follow-through increase the likelihood of a breakdown.
- The price is currently retracing into an FVG region, which aligns with previous structural resistance. This could serve as an ideal area for sellers to re-enter the market, pushing price lower towards new lows.
Potential Scenario:
If price rejects the FVG zone and fails to break above the descending trendline, the bearish trend is expected to resume. A strong rejection here could lead to increased selling pressure, targeting the key support zone below. If this support breaks, ETH could see a continuation of its larger downtrend, potentially reaching lower price levels.
Risk Considerations:
While the overall trend remains bearish, traders should be cautious of any sudden shifts in momentum that could invalidate the bearish thesis. A strong bullish breakout above the descending trendline would suggest a change in market structure, requiring a reassessment of the outlook. Additionally, macroeconomic factors and broader market sentiment, including Bitcoin’s movement, could influence Ethereum’s price action.
Conclusion:
ETH remains in a clear downtrend, with price currently testing a critical FVG zone within a bearish structure. Unless a significant breakout occurs, the market is likely to continue its descent, with sellers targeting the major support area. Traders should closely monitor price action in the FVG zone for confirmation of the next move.
