What Ethereum's Current Retracement Means for Traders

FxNews—Ethereum's price is experiencing a pullback from $2,310, having shifted above the 61.8% Fibonacci level, creating a bearish long-wick candlestick pattern. Meanwhile, the Awesome Oscillator and RSI (14) signal that the bear market is weakening.

The pivot is at $2,435, as shown in green in the 4-hour chart above. This active resistance was identified using the Fibonacci cluster method with 50% and 61.8% retracement levels. Therefore, the ETH/USD primary trend remains bearish as long as the price stays below $2,435.

Looking ahead, the ETH/USD price is attempting to fill the FVG (fair value gap) area, indicating the price could potentially rise further before the downtrend resumes.

Zooming into the 30-minute chart to find a trigger point for the bearish scenario, the Supertrend line at $2,352 serves as the trigger line. If the bears (sellers) close below $2,352, a new bearish wave will likely be triggered, which could result in Ethereum's price dipping further. In this scenario, the next bearish targets could be revisiting $2,310, followed by $2,250.

The bearish scenario should be invalidated if the ETH/USD price crosses above the $2,435 pivot/resistance.