Ethereum's trend is at a critical stage, which is the box consolidation period after the peak decline of 3440. You see, this price is cautiously testing the horizontal support level below, which is not a simple number, but an important "gate" of the previous convergence zone. The price has not been broken through, forming a wonderful balance.
We cannot say that such a structure is a signal of reversal, because the power of the short side has not been fully released. In the world of trading, we don't act easily without a clear right signal. From the top to the current box adjustment, although the box has not been broken, we can feel the hesitation and uneasiness of the market.
Now, if we want to take action, it may be a good choice to go long at the support. But remember, this is a left-side transaction, with risks and opportunities. Our defense point is set near the previous low, which is our last line of defense. Only when the box breaks up and stabilizes, can we say that the real right-side trading opportunity has come, and then our defense point is set at the bottom of the box.
Experienced traders know that if this box consolidation eventually evolves into a descending rectangular pattern, the price correction is expected to be around 3020. But no one can say whether it will reach this point, it may be higher or lower. Once the market structure changes, we need to observe and judge more carefully.
For long-term long position holders, there is still a buy order in the 2920~2940 range. If the current support level can be maintained and is effective, we may enter another long-term long position in the right-side trading method. $ETH
