Ethereum Short Setup: Key Resistance Holding?

Ethereum’s recent price action suggests a potential short trade if resistance holds. The market has seen an impulse move into the 0.618 Fibonacci retracement and VWAP SR support, aligning with a lower high and lower low structure.


Key Points:

• Testing Key Resistance: Ethereum is currently trading at the 0.618 Fibonacci level and VWAP SR support, both acting as resistance.

• Lower High Structure: Price action continues to project lower highs and lower lows, favoring further downside.

• Liquidity Below Swing Low: A rejection here could lead to a move lower, targeting the liquidity resting beneath the most recent swing low.

• Next Key Support: The 1,644 daily support level is a major downside target if the trend continues.

If resistance holds, Ethereum is likely to continue its downward trend, making this a favorable short opportunity. However, proper risk management is essential, as price action should always be evaluated in real time. Traders should exercise discretion when executing and managing this setup.