Ethereum ($ETH /USDT) - 4H Chart Analysis:
Current Price:$2,600.92
1. Ascending Channel Breakout:The chart shows an ascending channel pattern forming between August 8 and August 15. However, this channel was broken to the downside around August 15, signaling a potential bearish reversal.
2. Bearish Flag Formation:Following the channel breakdown, ETH/USDT appears to have formed a bearish flag, a continuation pattern that often leads to further downward movement. This pattern is highlighted in yellow.
3. Support Zone:There is a critical support zone around $2,550 - $2,560, marked by the purple box. This level has been tested multiple times and has held firm, making it a significant level to watch.
4. Price Consolidation:After the bearish flag breakdown, ETH/USDT is currently consolidating around $2,600. The consolidation is occurring just above the support zone, indicating that bulls are attempting to defend this level.
Potential Scenarios:
- Bullish Scenario:If ETH/USDT manages to break above $2,620, we could see a retest of the $2,700 - $2,750 resistance zone, which aligns with the top of the previous ascending channel.
- Bearish Scenario:A decisive break below the $2,550 support could lead to a sharp decline towards $2,450 or even lower, confirming the bearish continuation from the flag pattern.
Key Levels to Watch:
- Resistance:$2,620, $2,700, $2,750
- Support: $2,550, $2,450
Traders should watch for price action around these key levels to gauge the next potential move.
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