The ETH/USD pair is correcting downward against the long-term trend, showing signs of forming a descending channel. Last week, the price reached the upper boundary near 4687.50 (Murray level [7/8]), then dropped to the lower one and has now resumed movement from the middle line of the Bollinger Bands. The next potential downside targets are 3540.00 (38.2% Fibonacci correction) and 3125.00 (Murray level [2/8], 50.0% Fibonacci correction). The key resistance for bulls remains at 4687.50 — a breakout above this level could trigger an exit from the channel and fuel further growth toward 5000.00 (Murray level [8/8]) and 5625.00 (Murray level [+2/8]).
Technical indicators confirm a developing bearish trend. Bollinger Bands are turning downward, MACD is increasing in the positive zone, and the Stochastic is pointing upward but approaching the overbought area. On the weekly chart, the current price structure resembles a “flag” pattern, which is not yet complete — meaning the downside potential remains.
Support and Resistance Levels
Resistance levels: 4687.50, 5000.00, 5625.00.
Support levels: 3540.00, 3125.00.
Trading Scenarios and ETH/USD Forecast
Forecast: Short positions may be opened from 3940.00 with targets at 3540.00 and 3125.00, stop-loss at 4240.00. Implementation period: 5–7 days.
Long positions may be considered above 4687.50 with targets at 5000.00 and 5625.00, stop-loss at 4475.00.
Scenario
| Timeframe |
Weekly |
| Recommendation |
SELL STOP |
| Entry Point |
3940.00 |
| Take Profit |
3540.00, 3125.00 |
| Stop Loss |
4240.00 |
| Key Levels |
3125.00, 3540.00, 4687.50, 5000.00, 5625.00 |
Alternative Scenario
| Recommendation |
BUY STOP |
| Entry Point |
4720.00 |
| Take Profit |
5000.00, 5625.00 |
| Stop Loss |
4475.00 |
John Isige is an experienced cryptocurrency journalist and market analyst specializing in digital assets, blockchain innovation, and emerging Web3 trends. He provides clear, actionable market insights for traders and investors, with particular expertise in DeFi, smart contracts, NFTs, RWAs, and AI-powered blockchain ecosystems. His commentary and analysis have been featured in FORECK.INFO, CoinGape, CryptoNews, and other leading digital finance publications
