Peter Smith
⬤ Ethereum's price structure changed significantly after losing its rising channel on the 4-hour chart, transitioning into a short-term downtrend. The breakdown triggered quick selling pressure that cleared out weak positions before finding buyers. This shift represents an important change in how ETH has been trading recently.
⬤ The chart reveals ETH bouncing from the $2,750 to $2,850 demand zone—an area that's shown strong buying interest multiple times. Traders have actively stepped in at these levels, preventing further drops. After the bounce, price moved back toward $2,900 but couldn't break above the old channel support, which now acts as resistance and creates a clear obstacle for bulls.
⬤ What we're seeing now looks more like a correction than a confirmed trend. The descending pattern shows lower highs forming after the channel break, with resistance building near that broken boundary. Whether ETH can reclaim its former channel structure will determine if momentum shifts bullish again or if the correction continues.
⬤ This setup matters because Ethereum sits at a decision point where support and resistance meet. As long as the $2,750-$2,850 zone holds, immediate downside stays limited. But without reclaiming the previous channel, corrective conditions remain in play. How price handles this level over the next sessions will likely shape short-term direction and volatility across the broader crypto market.
Peter Smith
