The support of $2,800 has just exploded, and if we don't get our act together with the analysis, the market is going to give us a lesson in humility that we won't forget soon. 📉
Family, what is happening with Ethereum is not just any weekend movement; we are facing a technical break that has experts on edge. That level of $2,800 was not just a pretty number, it was the wall that separated optimism from a free fall. Losing that zone activated what we call a "descending triangle" in the trading world, a figure that is usually the prelude to a stronger blow.
If we look closely at the charts, the outlook tells us that the next important "floor" is at $2,500, where the 200-week moving average awaits. But be careful, if that step doesn’t hold, technical theory suggests that ETH could go looking for $2,100. We are talking about an additional drop of 22% from where we are currently standing. 😱
Why does this environment feel so heavy? It’s not just the price; it’s the internal sentiment of the network. There is an indicator called NUPL (which basically measures whether people are making or losing money without having sold yet) that has just moved from the "anxiety" zone to the "fear" zone. Historically, whenever Ethereum is tinted with this orange color of fear, we have seen long and painful winters, like the ones we experienced in 2018 and 2022. ❄️
Furthermore, the average prices of the last months are crossing in a way that we never like to see: the 111-day average fell below the 200-day average. In street language, this means that the selling momentum is winning by a landslide. 📉 The bulls have the burden of proof, and for now, it seems they have run out of arguments against market pressure.
The big question that remains in the air is: are we facing a golden opportunity to accumulate cheaper or is this the beginning of a crypto winter that will force us to keep our wallets closed for a good while?\u003cc-23/\u003e
