Ethereum Price Bounces Off Demand Zone

Ethereum’s break of the long-standing support zone at $2,814.0 confirmed its bearish market trend. Sellers successfully penetrated the demand zone on their third attempt, marking a pivotal moment in the downward momentum. The appearance of a “three black crows” pattern at this level signalled strong selling pressure, resulting in a decisive bearish breakout.

 

Following the breakout, Ethereum’s price dipped to the demand zone at $2,195.0, where it initially rebounded sharply, rallying back to the previous support level of $2,814.0, which now acts as resistance. However, selling pressure soon drove the price back to the $2,195.0 demand zone. While the price is bouncing off this level again, the upward movement is weaker, showing diminished momentum compared to the first rebound.

Ethereum Key Levels

 

Demand Levels: $2,195.30, $1,995.30, $1,785.0
Supply Levels: $2,814.0, $3,086.0, $3,541.0

 

Indicator Analysis

Since mid-August, shorter bars have appeared on the MACD (Moving Average Convergence and Divergence) indicator, highlighting weak momentum despite the initial bounce from the $2,195.0 demand zone. The recent bullish crossover of the MACD line and signal line indicates some upward movement, coinciding with the price rise above the 9-period Moving Average. However, the lack of sustained momentum may result in a ranging market, potentially limiting speculative opportunities in the near term.

 

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