Ethereum faces Critical Decision Zone as Price Slips Below Key Support
Ethereum (ETH) is at a crucial juncture as its price has retreated from a notable resistance area. The 0.618 Fibonacci retracement level,combined with daily resistance and a descending VWAP,forms a formidable barrier. After repeated attempts to breach this zone, ETH has now fallen below the point of control (POC), signaling a shift in market sentiment.
- Major Resistance: The 0.618 Fibonacci level aligns with daily resistance and a descending VWAP, creating a strong ceiling.
- Loss of POC: Price has dipped below the volume point of control, indicating sellers are gaining the upper hand.
- Bearish Trend: Lower highs and a stalled breakout suggest a move toward the next key support near $1,540.
Traders are now watching closely as Ethereum’s price action hints at a potential 10% downside move. The next logical support level is around $1,540, a zone with visible price inefficiencies that could attract further selling pressure. however, a sudden reversal is possible, as Ethereum has shown unexpected strength in similar situations before.
For now, caution is advised as the market hovers near this decisive level. If buyers can reclaim the POC, it might signal a local fakeout before a potential upward move. Otherwise, a break below the recent swing low could lead to a deeper correction. Stay tuned for further developments in this critical price action.
