ETHUSD – Bearish Channel Respect, Flag Breakdown SetupHi
The chart illustrates a clean, structured bearish trend where price continues to respect a broad descending channel. Each major reaction level and pattern aligns well with the larger downtrend, indicating that sellers are still in control.
Price recently tapped a key flip area near the upper boundary of the channel, a crucial zone where previous support has turned into resistance. The rejection from this area confirmed a strong supply and initiated a sharp decline, marked on the chart as the flagpole.
Following the impulse drop, the market entered a consolidation range, forming a classic bear flag structure. Price corrected roughly one-third of the flagpole; a typical retracement depth before continuation in a downtrend.
The drawn projection suggests a bearish continuation from the consolidation box, with the price expected to break lower. If momentum follows the channel’s trajectory, ETH could descend toward the first S&D zone, which aligns with the lower boundary of the macro channel. The marked target around 2848 sits near a liquidity and demand cluster, making it a logical tap point before any significant reversal or larger breakout attempt.
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