ETH at the Strategic Peak: Meme Path to Heaven Challenged in the Central Zone

Ethereum is currently facing a challenging period after forming a series of higher lows and highs. However, selling pressure in the upper region of the channel is limiting upward momentum, while active investors are protecting support levels in the middle. According to market analyst Ted, ETH is striving to reclaim the $2,800-$2,900 zone, which is considered a significant step before aiming for higher targets at $3,300-$3,400. With the current price hovering around $3.14K, the market is awaiting clear signals from the candlesticks.

Battle at the Central Trend Line

Trader Kamran Asghar pointed out that buying strength is gradually waning, as evidenced by candles near the central area of the upward meme channel. Although the channel still maintains an overall bullish outlook, warning signs are becoming evident. Repeated attacks on the central trend line indicate that buyers still control the situation, but the upward momentum is slowing considerably.

Worst-Case Scenario: Channel Break Could Lead to Sharp Decline

If Ethereum fails to hold the lower trend line of the channel, the short-term bullish trend could become invalid. In this case, the price may drop to the $2,760 region first, then continue to decline further to $2,700-$2,680 if selling pressure continues to increase. This would be a concerning development for long-term holders.

CME Gap: An Additional Worry

An additional factor increasing investor caution is the potential formation of a CME gap due to weekend trading. History shows that such gaps are often filled within a few weeks, which could introduce unwanted volatility and disrupt the expectations of traders planning long-term strategies.