Ethereum Price Analysis: ETH might be getting ready to do the unimaginable
- Ethereum price is looking to retest the bearish breaker and potentially head lower.
- A 12% to 16% downswing to the buy zone ($1,992 to $2,208) seems likely.
- In an unlikely scenario, ETH might retest the 200-day Moving Average (MA).
A bearish breaker ($2,525 to $2,674) is being formed on the H4, a retest of this level could push the Ethereum price lower.
Before getting into the specifics of how low ETH could dip, here’s what a breaker is and why it occurs.
What is a bearish breaker?
- A bearish breaker starts as a demand zone.
- Price bounces off of this and breaks the recent swing high to its left, known as Market Structure Break (MSB).
- This break of the previous swing high lures traders to go long, but what does price do? — proceeds to shatter the demand zone, flipping it into a supply, trapping traders, giving birth to a bearish breaker.
Why does this happen?
- This is a way for market makers to lure and trap traders in a long position and then collecting liquidity to fuel their short positions.
Typically, entering at the first or second tap of the breaker is profitable.
If the buy zone is breached, the Ethereum price might retest the swing lows at $1,865 and $1,814. Following the breakdown of these levels, it might tag the 200-day MA at $1,794.
If this were to happen, these three levels would provide a good opportunity to accumulate ETH.
Invalidation of this long position would occur if ETH sweeps the swing low at $1,727.
Disclaimer: This is NOT financial/investment advice.
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