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Ethereum’s bullish breakout from a bearish channel in May initially created a wave of positive anticipation in the market. Yet, this optimism was short-lived as the market conditions deteriorated. The impulsive price movement in May led to the formation of a swing high at 4095.0, which fell short of surpassing the previous high. As the price eventually dipped below the initial bullish swing, it marked the first significant bearish break of structure for the year.
The situation further deteriorated when a new swing high, established in late July, was lower than the previous high from the bullish breakout. This development reinforced the bearish trend, indicating a shift in market sentiment.
ETH Key Levels:
- Demand Levels: $3088.0, $4055.0, $4869.0
- Supply Levels: $2170.0, $1933.0, $1545.0
Indicator Analysis
The price’s brief ascent from the demand level of $2824.0 was quickly overshadowed by a bearish trend. The Smoothed Heikin Ashi candles, which showed red hues, indicated a decline in price following the formation of a swing high. This suggests that bearish momentum has taken hold.
The Williams Percent Range indicator signalled an overbought condition at the swing high in late July. This overbought signal was followed by a significant price decline, confirming the ongoing bearish break of structure and underscoring a continued downward pressure in Ethereum’s price action. As a result, the market remains under a bearish stance, with further attention needed to assess potential reversals or continued declines.
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