Ethereum has been on a rollercoaster lately. After a strong recovery bounce, ETH slammed right into a "ceiling" today at the $3,100 level and got rejected sharply.
Now everyone is asking the same question: Is the rally over, or is this just a pit stop before going higher?
Looking at the 1-hour chart, the immediate momentum seems tired. Indicators like the MACD have crossed over into bearish territory, suggesting the bears have temporary control.
Here is how I’m approaching this crossroads, with two distinct game plans based on the setup above.
The Game Plan
We are currently stuck between clear resistance and support. This is a classic "patience pays" scenario.
Scenario 1: The Short-Term Pullback (For active traders)
Because we got rejected so clearly at $3,100, the immediate trend is pointing down.
The Play: Traders are looking at short entries near that $3,100 resistance.
The Targets: They are aiming for pullbacks to the green dashed lines shown on the chart, specifically around $2,975 and $2,900.
The Risk: The stop loss needs to be tight, just above that $3,100 ceiling.
Scenario 2: "Buy The Dip" (My preferred approach)
I am personally looking for an opportunity to reload long positions, but not at current prices. I want the market to come to me.
The Play: I am setting alerts for the major support zones lower down. The chart highlights a "Potential Long Entry" zone around $2,900, and major support further down near $2,750.
The Golden Rule: Do NOT just buy blindly if it hits those levels. As the chart notes, you must "Wait for Bullish Signals at Support". Look for the price to stabilize and bounce before jumping in.
The Goal: If support holds, we target a move back up to $3,100 and eventually $3,250.
Bottom Line: Don't chase the price right now. Let it settle at one of these key levels before making your move.
Are you waiting to buy the dip, or are you shorting this pullback? Let me know in the comments below!
Disclaimer: This is not financial advice. This is just my personal view of the charts for educational purposes. Trading crypto is risk