Let’s start with the ETH quote from Monday:
“Indicators have already produced sell signals, which means that if bears manage to push ETH below the lower border of the consolidation and the red wedge’s support line, the bearish scenario from December 11th will become the leading one.”
And again… that’s exactly what happened – Monday closed below the consolidation and under the wedge support. Additionally, sell signals remain active on all major indicators, which means ETH (just like BTC) has shifted into the Dec.11 bearish scenario, and unless bulls quickly take back the lost levels, momentum says they’re not strong enough to reverse it right now.
“(…) If price closes below the upper line of this formation, expect another test of the previously broken wedge line. And if that breaks too? That would be the second invalidation, which could open clear path toward:
- the lower line of the green channel (currently at around 2823.55)
- the 61.8% Fibonacci retracement
- possibly even a full retest of the falling wedge support (currently at around 2490)
Lab Takeaway – What Should Traders Actually Watch Today?
Both BTC and ETH have confirmed breakdowns and active sell signals, which means the sellers control the short-term trend.
The bearish scenarios from Dec.11 are still in control. For the outlook to change, bulls would need to climb back above the support levels they just lost and stay there. Until that happens, the market is following the downside path.
See you on the next chart.
Anna
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