ETH/USD Hourly Chart (Binance) – Source: TradingView
This signal system identifies decisional time frames across four different time frames (daily, 4-hour, 1-hour, 15-min) to flag high-probability trades.
It seems that the selling pressure increased once ETH hit $3,365 last week, while bulls failed to get past this sell wall on Sunday as Trump shared his tariff threat on Truth Social.
Meanwhile, a sell signal popped up earlier today, as the price broke below a key structural level at $3,150.
This was the uptrend’s previous high, meaning that we can officially say that ETH is once again on a downtrend.
The price has now been dropping for 12 hours straight, confirming the signal’s strength. We could now expect a retest of former support areas that could now turn into resistance.
The first of these former demand zones would be the $3,080 level, followed by the even more relevant $3,150. The latter might be considered the ideal entry for a short position if the price action confirms a rejection.
It is highly likely that Ethereum will revisit its late December lows at around $2,900 if the downtrend persists, especially as geopolitical tensions are favoring a bearish outlook as well.
Three Consecutive Sell Signals Confirm that Bearish Momentum Has Accelerated
Moving to the hourly time frame, we have three consecutive sell signals, all taking place at strategic levels.