- OBV on Ethereum chart shows Head and Shoulders pattern
- Bears gaining strength as bulls struggle to defend support
- Breakdown could signal deeper correction ahead
Ethereum’s On-Balance Volume Flashes Bearish Warning
Ethereum ($ ETH ) bulls are under pressure as a Head and Shoulders pattern forms on the On-Balance Volume (OBV) chart — a classic signal of weakening bullish momentum. The OBV is a key indicator that tracks volume flow, often used to confirm or warn of price direction.
Currently, this pattern suggests that buyers are losing control, and unless bulls step in with strong volume and price support, a breakdown may be on the horizon. If this bearish setup plays out, ETH could face increased selling pressure, potentially leading to a deeper correction.
Bulls Need Urgent Reversal to Avoid Breakdown
To invalidate this bearish pattern, ETH bulls must show strong follow-through in both price and volume. This means pushing price action higher while also showing accumulation on the OBV — a tough task in the current uncertain market .
Key resistance now lies in reclaiming recent highs and holding above neckline support levels. Without these, the risk increases for a sustained drop, particularly if the broader crypto market sentiment weakens further.
Despite the negative technical setup, macro factors like ETH ETF developments, growing L2 adoption, and strong developer activity still offer fundamental support. However, these won’t matter in the short term unless bulls can reverse the technical trend.
Keep an Eye on Volume and Market Reaction
For traders, all eyes should be on the OBV and whether ETH can regain positive volume momentum. A bounce here could trap bears and fuel a strong recovery. But if volume continues to drop while prices stall, the Head and Shoulders pattern could play out fully, leading to another leg down.
Patience and risk management are crucial right now — especially as Ethereum trades near critical support zones.
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