Ethereum ($ETH ) has rebounded 23% from its February 6 low of $1,740, offering short-term relief to investors. However, deeper technical and on-chain analysis suggests the broader downtrend may still be intact.
A bearish “pole and flag” structure is forming on the 12-hour chart, and the recent bounce lacks the strong volume typically seen in sustainable reversals. While price moved higher, On-Balance Volume (OBV) remains flat — a signal that larger players may not be supporting this move.
Additionally, long-term holders have increased sell-side activity by 82% within just four days. Net outflows from wallets holding $ETH for over 155 days rose sharply, indicating that experienced investors may be using this rally as an exit opportunity rather than accumulation.
Key levels to watch:
• $1,990 – Immediate short-term support
• $1,750 – Critical Fibonacci support
• $1,510 – Major historical retracement zone
If the bearish flag breaks down, the measured move points toward the $1,000 psychological level. To invalidate this scenario, ETH must reclaim and hold above $2,780 with strong conviction and volume.
As always, technical patterns are probabilistic, not guarantees. Crypto markets remain highly volatile, and macro conditions or ETF flows can quickly shift sentiment.
Is this 23% bounce a true reversal — or just a relief rally before another leg down?
#Ethereum #ETH #CryptoNews #CryptoMarket #TechnicalAnalysis #OnChainData #CryptoTrading #Altcoins #Bearish #BullTrap #Bitcoin #Blockchain
