ETH Technical Analysis: Identifying Recovery Potential After Sharp Market Correction
Ethereum (ETH) has experienced a significant intraday drawdown, currently trading down -4.38% after a sharp rejection from the $3,367.98 level. Price action is currently attempting to stabilize near the $3,200 psychological mark following a flush to the 24-hour low.
Technical Breakdown:
RSI (6): Currently at 26.70. This deep oversold reading indicates that the immediate selling pressure has likely reached an exhaustion point, increasing the probability of a short-term relief rally or mean-reversion move.
Support & Resistance: Key immediate support is established at $3,175.00. On the upside, bulls face immediate resistance at $3,250.26, with a more significant barrier at the $3,292.72 level.
Trading Targets:
Entry Range: $3,185 – $3,210
TP 1: $3,250
TP 2: $3,290
SL: Below $3,160
Market Outlook:
Bearish Momentum / Oversold Bounce. While the 1-hour chart shows a dominant bearish candle, the extreme RSI levels suggest the downward move is overextended. With a massive 24h volume of $12.20B USDT, liquidity is high, which often leads to volatile "V-shape" recoveries. Traders should look for a successful defense of the $3,175 level to confirm a local bottom.
