After facing rejection from the formidable resistance zone at $2.6K, Ethereum underwent a substantial downturn, breaking through multiple critical support levels.

However, it has now landed at a substantial and decisive range, suggesting the possibility of a bullish reversal.

By Shayan

Ethereum Price Analysis: The Daily Chart

A detailed analysis of Ethereum’s daily chart reveals a notable rejection after attempting to surpass the $2.6K resistance, resulting in a 20% decline. Concurrently, the price breached two vital support zones, the upper boundary of the multi-month ascending wedge and the lower boundary of the short-term expanding wedge, signaling prevalent selling pressure in the market.

This negative sentiment is further underscored by a significant bearish divergence between the price and the RSI indicator on the daily chart, acting as a catalyst for the downward momentum.

Nevertheless, Ethereum is currently approaching a substantial support zone, encompassing the 200-day moving average and aligning closely with the pivotal static support at $2.1K. Consequently, a potential reversal leading to a consolidation phase appears to be the most likely mid-term outcome.

The 4-Hour Chart

Analyzing the 4-hour chart – following an impulsive surge, Ethereum encountered considerable selling pressure, initiating a correction phase. This heightened selling activity led to an aggressive and sharp decline, resulting in a successful break below the multi-month ascending trendline, highlighting the dominance of sellers in the current market conditions.

At present, the ETH price has reached a significant support region, defined by the decisive static zone at $2.1K. This crucial level has effectively halted numerous downward attempts in recent months, establishing itself as a robust barrier against sellers.

The expectation is that the price will find support around the $2.1K zone, directing in a mid-term consolidation stage bounded by the $2.1K significant support and the $2.5K noteworthy resistance. Meanwhile, should a bullish retracement