• Ethereum [ETH] bulls were unable to establish a rally after sellers forced a large correction.
• Despite what the indicators say, if ETH was truly bullish, the breakout to $2000 has no business reversing back into the previous range formation.
• Traders can wait for a drop below $1895-$1915 to take short trades or watch for a move above $1950 to show bullish intent.

Ethereum’s Bullish Bias

The longer-term bias of Ethereum remained bullish, supported by higher timeframes and indicators such as the CMF and OBV. The RSI has fallen back to neutral 50 but could revive soon.

Breakout Reversal

Despite these positive signs, Ethereum’s attempted breakout past the three-week range from $1840-$1930 was almost fully retraced, showing that bulls lacked conviction and bears are far stronger than it appears.

Low Volume Trading Weekend

The weekend saw volatility and trading volume decline, with prices hovering in the $1925-$1945 region with little sign of strong trend direction. This indicates that speculators went to the sidelines over the weekend.

Short Trade Opportunities

Traders can wait for a drop below $1895-$1915 to take short trades or watch for a move above $1950 to show bullish intent.

Exercise Caution

Buyers must exercise caution when entering long positions as prices could still take another tumble in coming days