Ethereum Shows Mixed Signals: Inverse Head and Shoulders Pattern vs. Bearish Momentum

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Ethereum Shows Mixed Signals: Inverse Head and Shoulders Pattern vs. Bearish Momentum
ETHEREUMCRYPTOTECHNICAL ANALYSIS
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Ethereum presents a mixed picture with a potential bullish reversal on longer timeframes but a strong bearish trend on shorter ones.

Ethereum has formed an inverse head and shoulder pattern on the 2-week timeframe, signaling a potential bullish reversal for higher timeframes. However, the daily and lower timeframes display a strongly bearish sentiment, with the price falling below the $3.4k support zone and losing its short-term range.

The drop below $3,509 on December 19th confirmed a bearish shift on the daily charts, accompanied by an RSI drop below 50 and a lack of significant gains in the OBV since the second half of November. This suggests a continuation of the downtrend, with the $3.4k former support zone now acting as resistance. The $3,555 and $3,101 levels are crucial for ETH's next price move, while the $3,314 level could provide a short-term bounce. A resurgence of buying pressure is needed to turn the daily timeframe bias bullish

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