Ethereum (ETH): One Last Chance to Buy Before the Next Leg Up?

Is Ethereum (ETH) about to go into a tailspin that takes it down into the low $2,000 area, or are traders and investors being given one last chance to buy?

$ETH price rejected from down trend again

Source: TradingView

The 12-hour time frame for $ETH shows how the price has rolled over from the near $5,000 top and has been heading down ever since. From observing the chart above it could be that a bottom has been reached at the 0.786 Fibonacci at a price of just over $2,700. 

That said, the price has so far failed to break through the downtrend, and the recent drop in price was from that particular trendline. If the 0.786 Fibonacci does fail to mark the bottom, the next horizontal support is at $2,500. 

Is $2,830 horizontal support about to break?

Source: TradingView

The daily time frame reveals that the $ETH price has generally gone sideways since the beginning of 2024. Having said that, a higher low and a break of the downtrend would potentially set the scene for a return to the high.

The strong horizontal support at $2,830 could be about to break. If it does so, there is the possibility that a local lower low comes into play, and that the price goes down to the $2,500 horizontal support.

The RSI at the bottom of the chart suggests that the moment the indicator line breaks up through the downtrend, the same thing should occur in the price action.

Safest trade is to wait for the breakout confirmation

Source: TradingView

For those of a nervous disposition, entering a long position in $ETH, when the market is suffering such a lot of negative sentiment, would probably feel very wrong. However, experienced traders would say that this is usually the best time to buy. 

That said, there obviously is the chance that the price could fall further. The horizontal support at $2,500 is a strong one, and then the horizontal support at $2,100 is the strongest of all. If entering, stop losses would need to be employed close to the support.

The safest trade would be to wait for the breakout and confirmation of the descending trendline. Given that the next leg up could be a big one, given that the Stochastic RSI indicators have touched bottom, forgoing a lower entry by waiting for the confirmation would probably be well worth it.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.