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Ethereum’s price action has recently experienced significant reversals, particularly at a key supply zone. The critical level of $2,814.0, which provided strong support for bullish reversals in late May and early July, has now become a pivotal resistance point.
After forming three descending peaks, the price decisively broke through the demand level on August 3rd. The appearance of the ‘three black crows’ pattern on the daily chart underscored the bearish momentum that facilitated this break. The pattern highlighted the market’s energy being expended to push through the demand zone.
Following a brief rebound from the demand level of $2,915.0, Ethereum’s price ascended to the former demand zone at $2,814.0. However, this key level, now acting as a supply zone, has reversed the bullish momentum, leading to a notable bearish reversal.
Ethereum Key Levels
- Demand Levels: $2,915.0, $1,995.0, $1,785.0
- Supply Levels: $2,814.0, $3,086.0, $3,541.0
Indicator Analysis
The indicators are signaling a shift in market sentiment. The Elder Ray Bull and Bear indicator shows that sellers currently dominate the market. This bearish sentiment is further supported by the Moving Averages, which have regained their position above the daily candles, indicating that sellers have the upper hand. As a result, the price is now trending back towards the demand zones, with $2,915.0 being the next critical level to watch.
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