Ethereum, 'Re-entry' Warning to Low Point..."Rebound is Over"

▲ Ethereum (ETH)

An analysis suggests that Ethereum (ETH) has lost its upward momentum after being blocked by a key resistance zone, increasing the likelihood of retesting lower price levels.

According to the cryptocurrency media outlet NewsBTC, Ethereum recently seemed to continue its rebound, but its upward momentum has sharply decelerated as it approached a major resistance zone. The current price structure also remains within a 'correction phase,' indicating a high probability of reverting to the lower range if selling pressure increases.

Analyst The Composite Trader explained that Ethereum is moving within a clear box-range structure based on higher time frames. This structure aligns with the 'TCT Distribution Model,' suggesting that the market might be preparing for a bearish rotation rather than an upward move.

The key is that a confirmed downtrend signal has not yet materialized. In this model, a 'third tap' – touching the resistance zone for the third time – acts as a decisive trigger. Currently, this condition has not been fully met. If this zone is confirmed, there is a possibility that a stronger downward movement could be triggered.

Conversely, some analyses suggest that a further upward movement might occur in the short term. In lower time frames, buying flows could form, leading to attempts to push the price up to the resistance zone, after which a strategy of switching to a short-selling position in that zone could be effective.

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