Ethereum is attempting to rebound after recent selling pressure, but the recovery so far lacks the strength needed to confirm a lasting bottom. With momentum appearing corrective rather than impulsive and key resistance levels still intact, downside risk remains on the table unless buyers can deliver a decisive structural shift.
No Impulsive Break, No Bullish Confirmation
According to a recent Ethereum update by More Crypto Online, the downside scenario remains valid unless price delivers a clear impulsive five-wave advance or decisively breaks above the weekend high. The bounce from last week’s low currently appears corrective rather than impulsive.
Related Reading
Momentum has been limited, and the structure does not yet suggest that a sustainable bottom has formed. So far, there is no clear technical evidence that a durable reversal is underway.
However, Ethereum is trading within a technically significant zone. Following the recent liquidation flush, markets have become more reactive, making it important to stay alert for potential reversal signals that could shift the short-term outlook.
For now, confirmation is still lacking. Until a stronger structural shift appears, close monitoring of the lower-timeframe micro structure remains essential to determine whether Ethereum builds strength or resumes its downward trajectory.
Ethereum Attempts Recovery After Sunday Selloff
Ethereum is attempting to stabilize after the sharp Sunday selloff, showing early signs of recovery. In his latest analysis, Lennaert Snyder noted that, similar to Bitcoin, ETH printed relatively weak weekend extremes around $1,929 on the low and $2,107 on the high. These levels now serve as key liquidity reference points for the week ahead.
Related Reading
Snyder’s broader plan anticipates a push toward higher prices, but he prefers to see nearby liquidity pools mitigated before considering quality long positions. With the higher-timeframe trend still pointing downward, short setups remain valid if the right structure presents itself.
For long entries, he wants to see a sweep of the $1,946 and/or $1,929 lows, as both represent weak pivots, ideally including a full sweep of the weekend low. Such a move could provide the liquidity grab needed for a high-probability reversal back toward the weekend high. However, if price rallies directly from current levels and leaves those lows untouched, he would instead look for short opportunities following a market structure break (MSB) near the $2,107 high.
Additionally, H1 liquidity sits around $2,015, offering potential scalp setups depending on whether the price gains acceptance above it or rejects it sharply. Longs would be considered on a clean reclaim, while failure after a sweep could favor shorts. With it being a bank holiday, no trades are being placed today, and the outlined plan remains intact unless price action invalidates it.
Featured image from Pixabay, chart from Tradingview.com
Credit: Source link