ETHFI Technicals Bearish; Key Support Test at $0.38 — Short Bias Advised
ETHFI is in a clear downtrend with price around $0.43 and a 13% 24h decline, driven by strong correlation with Bitcoin (BTC -10%). Daily indicators are bearish: RSI ~26 (oversold), MACD negative, price below EMA20/50/200, and Supertrend flipped to sell. Key structural supports are $0.3812 and $0.4290; a break below $0.38 could target $0.30 and a longer-term bear scenario near $0.1040. Immediate resistances sit at $0.4573, $0.5083 and $0.57. Volume is elevated (red-dominant, weekly spike) and OBV confirms selling pressure. Analysts propose a short strategy (example: entry $0.43, stop $0.46, targets $0.38/$0.30) while warning of an oversold bounce risk; recommended position sizing 1–2% and tight stops. Macro and BTC downside are the main risks; bullish reversal would require reclaiming $0.4573 and closing above EMA20. This technical view is provided for traders’ situational awareness, not investment advice.
Bearish
The report shows multiple converging technical bearish signals: broken market structure, price below key EMAs, Supertrend and MACD bearish, and heavy selling volume with OBV declining. Strong BTC weakness (-10%) and high correlation (0.85+) amplify downside risk for ETHFI. Key supports at $0.3812 and $0.4290 are critical; a failure to hold $0.38 would likely accelerate declines toward $0.30 and potentially lower. Short-term traders can take advantage of attractive risk/reward on shorts, but must guard for oversold bounces (RSI <30) that can trigger short-covering. Historically, altcoins have followed BTC dumps with cascading liquidity events (e.g., 2022 mid‑year and 2023 drawdowns), where heavy volume and EMA-death crosses extended losses before capitulation and later accumulation. Therefore, expect continued short-term pressure and elevated volatility until either BTC stabilizes or ETHFI reclaims resistance levels (notably $0.4573 and EMA20) to signal a trend reversal. Position sizing and tight stops are essential to manage spike rebounds or sudden liquidity-driven reversals.