For Ethereum’s conservative traders, risk would be to enter short position below…

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the opinion of the writer.

Ethereum [ETH] has seen rough times in recent weeks on the price charts. During the harsh drop on 12 May across the market, Ethereum had managed to hold on to the $1750-$1950 support zone. Even as June dawned, the price held on to this demand zone, but the buyers were exhausted within a week into June. The altcoin, once again, cratered to dip as low as $881 just a few days ago.

The trend favored the sellers, and shorting the asset seemed to be the safer trade on longer timeframes.

Source: ETH/USDT on TradingView

On the daily timeframe, the downtrend was clearly seen. It was characterized by a series of lower highs and lower lows. The latest of these lower highs sat at $1,284, while the more prominent recent lower high lay much higher at $1,920.

Therefore, it can be argued that the long-term trend would continue to lean bearish until ETH can break above the $1,920 mark. However, such a wide margin for error would be of little help to positional traders.

Development of interest on the daily ETH chart was the formation of a hidden bearish divergence between the price and momentum, highlighted in white. While this could continue to develop for a few more days, it was an early signal that the bearish trend was likely to continue. The OBV also agreed as it slumped lower to show that selling volume outweighed the buying pressure.

Source: ETH/USDT on TradingView

Zooming in on the H4 chart, a set of Fibonacci retracement levels was plotted. They showed the 38.2% retracement level to be at $1,278, which was just beneath the $1,305 resistance and the $1,284 mark.

The confluence of these