Ethereum’s Bounce Still Lacks Conviction — Downside Risk Remains

Despite recent selling pressure, Ethereum is trying to bounce back from this week’s sell-off but the recovery so far does not have the strength needed to confirm a long bottom. But if momentum is corrective rather than impulsive and key resistance levels are still intact, downside risk remains on the table until buyers can deliver a decisive structural shift.

No Impulsive Break, No Bullish Confirmation

The downside scenario is valid unless price delivers a clear five-wave advance or decisively breaks above the weekend high, according to ‘Although More Crypto Online’ latest Ethereum update. A rebound from last week’s low is now deemed corrective rather than an impulse-impulsive bounce, and it seems to be right.

The structure does not yet indicate that a sustainable bottom has formed, and Momentum has been limited. Until now, there is no clear technical proof that a long-lasting reverse is underway.

However, Ethereum is trading in a technically important zone. After last month’s liquidity flush, markets have become more reactive; so we need to keep track of reversal signals that could change the short-term outlook.

No confirmation is yet available for the term “confirmation” of a . But close monitoring of the lower-timeframe micro structure is still necessary until a stronger structural shift can be observed to determine whether Ethereum develops strength or resume its downward trajectory.

Ethereum Attempts Recovery After Sunday Selloff

But Ethereum is trying to stabilize after the sharp Sunday selloff, which has’so far started recovery’. Lenaert Snyder, in his latest analysis, said that like Bitcoin, ETH printed relatively weak weekend extremes around $1,929 on the low and $2,107 on high. They now serve as key liquidity reference points for the week ahead of these levels, which are a long-held level of .

Thebroader Snyder plan predicts that there will be a push for higher prices, but Snyder’s desire to see nearby liquidity pools cut short before considering good long positions is taken into account. The higher-timeframe trend is still pointing downward, so short setups are valid even if the right structure presents itself.

Long entries He wants the $1,946 and/or $1.929 lows sweep for long entries as both represent weak pivots – including a full sweep of the weekend low (i.e. That would be a move that could give liquidity for reversal of high-probability back towards the weekend high, according to . But, if price rallies directly from current levels and leaves those lowsuntouched, then he would look for short opportunities after a market structure break (MSB) near the $2,107 high.

Also, H1 liquidity has a value of about $2,015, with potential scalp setups depending on whether the price gains acceptance above or rejects it sharply. A clean reclaim would be given to Longs, and shorts could be favoured by failure after a sweep. No trades are being made today as it is a bank holiday, and the plan remains intact except for price action to invalidate its planned plan.

Featured image from Pixabay, chart from Tradingview.com

Thanks for reading Ethereum’s Bounce Still Lacks Conviction — Downside Risk Remains