Ethereum Faces Supertrend Rejection: Is a Reversal Coming?
Ethereum hits Supertrend resistance at $4,200, raising short-term reversal concerns while higher time frame remains bullish.
- ETH rejected at Supertrend resistance near $4,200.
- OBV indicator still shows bullish support intact.
- Long-term trend remains positive despite short-term caution.
Ethereum ($ETH) has recently faced a technical rejection at the Supertrend resistance, marked by the red indicator line. Traders were hoping to see this level flip into bullish territory, but the failure to do so has introduced a potential for a short-term reversal.
The Supertrend is a popular indicator used to identify the market’s trend direction. A rejection at this line often signals hesitation in continuing an uptrend, especially in the short term. However, it’s important to note that while this might spook some traders, it doesn’t necessarily confirm a full-scale downtrend is in motion.
On-Balance Volume and Key Support Still Strong
Despite the resistance, Ethereum continues to show resilience on other technical fronts. The On-Balance Volume (OBV), a key momentum indicator, has not broken below its major support level. This suggests that buying pressure remains steady and there hasn’t been a significant shift in market sentiment yet.
Additionally, the $4,200 support zone has not been breached. This level has acted as a key psychological and technical level in recent weeks, and its defense is crucial for Ethereum to maintain its bullish structure.
Long-Term Trend Remains Bullish
Zooming out to higher time frames, Ethereum’s broader trend still leans bullish. Even with the short-term rejection, the structure of higher highs and higher lows remains intact. As long as $ETH stays above the $4,200 support and OBV doesn’t crack, the long-term outlook remains optimistic.
Traders should keep a close eye on how Ethereum reacts around the current levels. A successful flip of the Supertrend resistance into support could reignite bullish momentum, while a failure might lead to a healthy correction before a possible continuation upward.
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