Peter Smith
⬤ Ethereum just hit a critical technical level after a sharp drop brought it back into a range that's historically triggered big reactions. For ETH to avoid further weakness, it needs to break above the highlighted purple zone and actually hold it as support. The chart shows this level has acted as a structural pivot multiple times before, making it a spot traders are watching closely.
⬤ Right now, ETH is trading beneath that band after breaking down, which suggests sellers are still controlling the price action around this area. The setup is pretty straightforward: if Ethereum can reclaim the zone, it could shift short-term positioning in favor of buyers. But staying below keeps the pressure on. We've seen similar technical setups play out before in ETH tests critical support, where Ethereum reacted around major structural levels.
⬤ If the level doesn't hold as support after being reclaimed, the analysis points to a potential sweep down toward the $1.3K region sitting beneath the current range. The chart projection shows deviation risk before any continuation lower. Similar downside scenarios played out in Ethereum drops below support, where losing key levels opened the door for deeper declines.
⬤ This situation matters because Ethereum is sitting at a decision point that historically separates consolidation from continuation moves. How price reacts here could shape broader crypto market sentiment and set the tone for where major assets head next.
Peter Smith
