I wanted to point out an important development on the 3-day chart for ETH before tomorrow’s session.
ETH has printed a perfect gravestone doji on the 3D chart which historically is one of the strongest reversal signals. This suggests the next major drop for ETH could begin from here.
That said, bulls have been defending this level by pushing price higher so far. If price can hold above the 3D close, buyers may have enough strength to negate this candle and attempt to break the recent highs. This is the scenario to watch if tomorrow’s session opens strong.
If price begins to break down and closes red below the low of the last 3D candle (approximately $2,175) the major drop will begin from this gravestone doji.
On the lower timeframes, $2,150 remains the key LTF support level while price is trading above it. However, if price drops back below and reclaims the $2,150–$2,180 range as resistance, that will be an early signal that the short-term lows will be retested and likely broken.
Several additional signals are worth noting heading into tomorrow.
The 21 EMA on the 3D chart (orange EMA) was respected precisely, as that is the exact level where the 3D candle closed. The 3D RSI is also getting rejected right below the midline of the channel and could even be forming a double top which is another early warning sign of fading momentum. Finally, switching to the weekly line chart, ETH has just printed a double top which would be confirmed if price begins to roll over at the start of this week.
Tomorrow morning’s session will be critical in determining whether these signals develop further. I wanted to get all of this outlined in advance so we can monitor the developments with a clear framework heading into the week.