Ethereum is trading just above the important level of $2,000 which is psychological, but obvious stability can be deceiving. According to a technical analysis published on TradingView by crypto analyst RLinda, what looks like a reversal attempt is, in fact, a counter-trend correction, a possible bear market bounce to set the bulls for a painful blow below.
Crypto Winter Tightens Its Grip
RLinda’s analysis is open with a direct test of how the crypto winter is still playing out and the support may come down to around $2,000.
Technical analysis of the 2-hour time chart shows that Ethereum has already printed a series of lows and lows following its rejection around $2,380 in mid-March. The recent low low saw the price of Ethereum drop to the $1,960-$1,990 area over the weekend, confirming that sellers are still fighting for control, forcing the market into what RLinda described as a counter-trend correction.
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This type of adjustment often creates the illusion of recovery. The price starts grinding up or moving sideways, but within the context of a broader bearish structure. The charts show this clearly, as now Ethereum is trying to recover lower after establishing the area below $2,000 over the weekend.
To make matters worse macro background related to Bitcoin. Bitcoin, which had been making what appeared to be an attempt to regain $72,000 last week, failed to hold those gains and retreated to $65,810 over the weekend. Bears they reasserted control and the weakness of Bitcoin directly down to altcoins. This, in turn, may cause the Ethereum price to bear the brunt of that spillover pressure in the coming days.
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An immediate focus on the 2-hour chart is a strong resistance group formed between $2,024 and $2,062. This area is consistent with many of the technical features seen on the chart, including previous support that has changed, Fibonacci retracement levels around 0.5 and 0.618, and a downward pressure line low levels in March.
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According to RLinda, Ethereum may explore the liquidity zones of 2025 to 2038. A short squeeze will give a good signal of a possible decline. Price resistance levels to watch in this case are $2,025, $2,037, and $2,062. The point of interest (POI) at $2,062.50, which is also shown on the chart above, is very important.
A retest of this resistance area, followed by a false breakout and consolidation in the short area, it will ensure the dominance of the bear. If that confirmation happens, it can create a counter-trend correction that leads to a new round of selling pressure that pushes the price of Ethereum to the interest support area around $1,900. At the time of writing, Ethereum is trading at $2,050.
Featured image from Pixabay, chart from Tradingview.com
