The daily chart for Ethereum (ETH/USDT) depicts a descending trendline, highlighting a pattern of lower highs, indicating a downward pressure in the market. Ethereum's current price is $2979.55, facing resistance (R1) at $4126.11, which is a significant jump from the current levels, suggesting R1 might not be an immediate concern.
More relevant is the immediate support level (S1) at $2858.79. If Ethereum breaks this support, the next level to watch is $2112.62 (S2). The price pattern suggests that Ethereum could be consolidating within this range before making a more significant move.
The RSI is near the lower boundary of the neutral range at 38.68, indicating that the asset is nearing oversold conditions. This could potentially lead to a buying opportunity if the asset shows signs of stabilization or a reversal pattern. The MACD is below the signal line but seems to be converging towards it, suggesting that the downward momentum might be slowing down.
Traders might consider watching for a bounce off S1 as a potential entry point for a long position with a close stop loss below this level. If the price breaks below S1, it could indicate further declines, and traders might look for short opportunities targeting S2. Conversely, if there is a reversal and a breakout above the descending trendline, it could signal a change in the downward trend, potentially targeting higher resistance levels.
More relevant is the immediate support level (S1) at $2858.79. If Ethereum breaks this support, the next level to watch is $2112.62 (S2). The price pattern suggests that Ethereum could be consolidating within this range before making a more significant move.
The RSI is near the lower boundary of the neutral range at 38.68, indicating that the asset is nearing oversold conditions. This could potentially lead to a buying opportunity if the asset shows signs of stabilization or a reversal pattern. The MACD is below the signal line but seems to be converging towards it, suggesting that the downward momentum might be slowing down.
Traders might consider watching for a bounce off S1 as a potential entry point for a long position with a close stop loss below this level. If the price breaks below S1, it could indicate further declines, and traders might look for short opportunities targeting S2. Conversely, if there is a reversal and a breakout above the descending trendline, it could signal a change in the downward trend, potentially targeting higher resistance levels.