ETH Just Collapsed Into Support — Relief Bounce or Start BreakEthereum / US DollarCOINBASE:ETHUSDBlackGoldMarket1. Market Structure & Impulse Context ETH has just printed a strong bearish impulse from the upper range, breaking decisively below the EMA cluster (fast + slow EMAs). This move is not corrective — it is an impulsive sell-off, signaling aggressive distribution from the resistance zone near 3,360–3,380. When price leaves a range with this level of momentum, the first reaction into support often determines whether the move is: a trend continuation, or a liquidity sweep before reversal Right now, ETH is at that decision point. 2. Key Zones on the Chart Resistance Zone: 3,360 – 3,380 → Major supply + prior rejection area Mid-Level / Reaction Zone: ~3,240 → Previous structure support turned resistance Support Zone: 3,160 – 3,180 → First meaningful demand after the breakdown Price is currently compressing just above the support zone, not bouncing strongly yet this is important. 3. EMA & Trend Alignment Both EMAs have now rolled over and crossed bearish, with price trading well below them. This confirms: - Short-term trend has flipped bearish - Any upside move from here is counter trend unless price reclaims the EMA zone decisively As long as price remains below the EMAs, rallies should be treated as pullbacks, not trend reversals. 4. Price Action & Liquidity Read Current candles are small, overlapping, and indecisive classic pause after impulse behavior. This often leads to one of two outcomes: - A technical relief bounce to rebalance liquidity - Or support failure once weak buyers are absorbed Liquidity is clearly resting below the support zone, while unmitigated supply remains above. 5. Scenarios to Watch 🔼 Bullish Relief Bounce (Corrective Scenario) Support at 3,160–3,180 holds Price pushes back toward 3,240 reaction level Extension toward 3,350–3,360 resistance if momentum builds ⚠️ This would still be a counter-trend move unless structure flips. 🔽 Bearish Continuation (Higher Probability) Clean break and acceptance below 3,160 Acceleration toward 3,120 → 3,080 liquidity zone Confirms that the impulse was the start of a larger markdown This scenario aligns with EMA structure, impulse behavior, and broader distribution context. 6. Trading Perspective Bias: Bearish continuation unless proven otherwise Aggressive longs are risky inside support without confirmation Shorts favored on: Weak bounce into 3,240 Or confirmed breakdown below 3,160 Summary ETH has transitioned from range → distribution → impulse. The current pause at support is not yet a reversal signal. Until price reclaims key structure and EMAs, the market remains vulnerable to another downside expansion. This is a classic moment where patience pays let the market show whether this support is real demand… or just a stop before the next drop.