The recent strong dump has broken the entire short-term bullish structure of ETH. More importantly, the bounce after the dump did not create a higher peak, indicating that buying pressure is merely reactive rather than proactive accumulation.
The price is stuck in a narrow range, where every upward movement encounters a light but steady selling pressure. This is a very familiar behavior before the market chooses a clear direction. If you look closely, you will see that the range is being compressed, volatility is decreasing, while volume is no longer spiking.
This usually signals that a new moving phase is about to occur; the issue is whether it will be up or down. With the current context, if BTC does not support, ETH can easily be pulled down further to test the nearest bottom. On the other hand, if there is leading force, the breakout must be strong enough to force those who are short or on the sidelines to jump in.
