#ETH UPDATE

On the weekly timeframe currently, the price is approaching a critical level on the chart, which is the 0.382% FIB support level just below $2.9K, specifically around $2860 to $2870. Suppose we confirm a break to the downside below that level, for example, with a weekly candle close well below it. In that case, the next major retracement level on the weekly timeframe is the 0.5% adjustment level, which is around $2.5K. $2.5K is also an important level on the chart based on previous resistance and support seen in the candle closes and back in Q1 of 2022. So, once again, $2.5K will be the next major price target to the downside if we confirm a break below $2.8K to $2.9K. In case you're wondering, below the 0.5% FIB level, we have the all-important golden pocket between $2000 and $2.1K, acting as strong support based on previous resistance and support levels.

If we take a look at the daily timeframe, we can see that in the short term, the price is still clearly trending upwards. However, when zooming out to the weekly timeframe, this short-term uptrend may just be a pullback within the larger bullish trend. So, whether we bounce here or at $2.5K, either way, this could be just a significant pullback within the larger bullish trend, similar to what we saw previously. For instance, the short-term bear trends seen here and here were followed by bounces off the support line at around $2850 and resistance around $3240.

Stay tuned for more updates.