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

▲ Ethereum (ETH)

An analysis has been put forward suggesting that Ethereum (ETH) is losing its upward momentum as it is blocked by a key resistance zone, and the possibility of retesting lower price levels is increasing.

According to crypto media outlet NewsBTC, Ethereum recently appeared to continue its rebound trend, but its upward momentum is rapidly slowing down as it approaches a major resistance zone. The current price structure also remains within a 'correction phase,' and it is diagnosed that there is a high possibility of returning to the lower range if selling pressure enters.

Analyst The Composite Trader explained that Ethereum is moving within a clear box structure based on higher time frames. This structure aligns with the 'TCT Distribution Model,' and it is interpreted that the market may be preparing for a bearish rotation rather than an upward movement.

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

There is also an analysis suggesting that, in the short term, an upward movement could occur one more time. In lower time frames, buying pressure may form, leading to attempts to push the price up to the resistance zone, and then a strategy of converting to a short selling position in that zone could be effective.

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