📌ETH/USDT: Reversal or Bull Trap? Chart Analysis

The ETH/USDT chart presents a complex picture that prompts reflection: is a reversal forming, or is this another trap for bulls before the continuation of the downtrend?

Key Observations:

· Current price: $2,093.70( + 2.04% over the period
· Price is significantly below all EMA )5, 10, 20, 60 periods, indicating a strong bearish trend
· Position near the lower Bollinger Band ( $1,834.67) may signal oversold conditions

Indicator Signals:

· MACD is negative ( -76.69), but attention should be paid to the divergence between DIFF (277.96) and DEA (201.87)
· RSI in oversold territory (30.99 for RSI12 and 33.64 for RSI24) — a classic signal of a possible reversal
· KDJ shows oversold values ( K:20.51, D:17.40), which may also indicate a correction

What to be cautious about:

· Trading volume of 371.14K ETH with a turnover of $762.29M suggests activity, but the direction is unclear
· Price has deviated significantly from the moving averages, creating potential for technical correction
· Historical lows on the chart are around $1,441.68, providing room for further decline

Possible Scenarios:

1. Bull Trap: A short-term rebound to the $2,500-2,600 zone followed by continued downtrend
2. Reversal Initiation: Holding current levels and gradually recovering to the Bollinger middle ( $2,635
3. Consolidation: Moving sideways between $1,834 and $2,600, building strength for the next impulse

Key Levels to Watch:

· Resistance: $2,635 Bollinger middle, $2,884 EMA600
· Support: $1,834 lower Bollinger, $1,441 historical chart low

📌Conclusion:

Technical indicators show mixed signals. Oversold conditions on RSI and KDJ suggest a potential upward correction, but the overall bearish structure — with the price below all EMA — remains. Caution and clear entry/exit points are necessary in current conditions.

Your approach? Are you waiting for confirmation of a reversal, or are you considering current levels as an opportunity for short positions?

⚠️Analysis is based solely on chart and indicator data. It is not financial advice. Always conduct your own research.