Ethereum (ETH/USDT) – Bearish Channel Structure Developing

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🔍 Technical Overview

Ethereum has broken down from its ascending channel, invalidating the earlier bullish projection toward $4,000. After failing to hold the channel midline around $3,577, price dropped sharply to $3,360, forming a new bearish descending channel.

Currently, ETH is trading near the midline of this bearish channel, which typically acts as a decision point — not a buying zone — in smart money models.

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🧠 NEoWave Interpretation

We may be inside a Complex Corrective Wave, possibly a Running or Contracting Flat evolving after the March top. The current structure resembles a B-wave trap, where price fakes out the upside before shifting momentum sharply downward. The break below the ascending channel midline confirms this bearish shift.

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📊 Smart Money Summary
• 🟥 BOS confirmed on 1H and 4H (lower highs and lower lows)
• 🔻 Midline failure acted as a smart money trap, followed by a liquidity sweep below $3,490
• 📦 Bullish Order Block around $3,490–$3,520 has been tapped, prompting a minor reaction
• 🟡 Current resistance sits near the channel top ~ $3,715

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🎯 Trade Scenarios

📌 Bearish Continuation:

If price fails to reclaim above $3,715, a retest and rejection from the channel top could trigger continuation toward $3,300–$3,250.

📌 Bullish Reversal (less likely for now):

Only a clean break and hold above $3,720 would suggest that bulls are regaining control, opening path toward $3,900–$4,000 — though this scenario is weakened after structural damage.

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⚠️ Trader Tip:

Avoid buying into midline reactions in weak channels. Better long setups form after stop-hunts, ideally near bullish OBs + internal BOS confirmations.

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✅ Conclusion

Ethereum remains under bearish pressure after losing its ascending structure. Unless price reclaims the $3,715 resistance zone with momentum, downside continuation remains likely.

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