Ethereum noted a bearish market structure on the daily chart, and the momentum and OBV signaled further losses were likely.
A bullish reversal from the liquidity pool below $2.9k is expected, but traders should be wary of lower timeframe volatility.was again trading at the $2.9k support level. It had previously visited this level on the 5th of July. In the following weeks, the bulls drove prices as high as $3.5k before faltering.
Should we expect a bounce to $3.5k this time? The network activity has dropped in recent months, but smart money activity gave aAt press time, Ethereum was trading at $2916. It had a bearish market structure on the daily timeframe. Below the $2.9k level, the next significant support zone is at $2.6k. The price action showed that such a dip is possible.
The daily RSI was just above oversold conditions and the OBV has steadily slid downward since June. Together they indicated further losses were coming. The $2.9k support is also the 61.8% Fibonacci retracement level and has been defended since April. Hence, there is a good chance that the bulls manage to defend it again.Over the past six weeks, the cluster of liquidation levels at the $2.8k zone has increased. Prices are inevitably attracted to these liquidity pools, making them magnetic zones. Even though $2.9k is a strong support, it is highly likely that the $2740-$2800 region is visited.A day or two of trading to establish $2.7k-$2.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis.
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