TL;DR
- TheSignalyst says that Ethereum remains bearish while trading below the downtrend line.
- ETH rejects a confluence zone formed by trend line resistance and structure resistance.
- The key support area to watch remains at $1,350-$1,500.
Ethereum is still struggling below the resistance level
Ethereum’s recent recovery has not yet convinced all analysts that the downtrend is over. TheSignalyst’s TradingView on June 20 claimed that ETH remains bearish after continuing to trade below the falling red trend line and printing a series of lower highs and lower lows.
The analyst chart shows ETH rejecting a confluence zone formed by a downtrend line and a horizontal structure area. This is important because confluence resistance can attract sellers more strongly than a single isolated level. When the price fails at diagonal and structural resistance, traders often treat the move as confirmation that bears are still defending control.
The support area still identifies downside risks
The important support area, according to the idea, is between $1,350 and $1,500. This gives traders a clear area to monitor if rejection persists. A controlled pullback to this range could trigger another reaction, but a decisive break below it would make the broader ETH structure look much weaker.
Currently, ETH is stuck between the support area that was important before and the downtrend line that keeps limiting bounces. Until one of these areas declines, the market remains technically stressed.
Why this setting is important is beyond ETH
EthereumThe chart is also important for the broader altcoin market. When ETH struggles against the dollar, risk appetite is crossed Decentralized finance Crypto assets with a smaller market cap often weaken along with it. This does not mean that every altcoin follows Ethereum, but Ethereum remains the standard for much of the smart contract market.
TheSignalyst’s setup therefore serves as a warning that the recent bounce still has a lot of work to do. The bulls need a clear break above resistance before the market can seriously talk about a stronger reversal.
This report is based on information from TradingViewTheSignalyst.
This article was written by the News Desk and edited by Samuel Ray.
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