Technical analysis by Ali-Traders-Pro about Symbol ETH: Sell recommendation (1/5/2026)

📊 ETH/USD Market Structure Analysis – Consolidation to Distribution Phase 🔍💎 🧭 Overall Market Structure Primary Range: ETH is trading inside a well-defined higher-timeframe range 🔴 Major Resistance (HIGHER): ~3,400 🔴 Major Support (LOWER): ~2,720 Price has respected this range multiple times, confirming institutional participation and balance. 🟪 Key Zone: Consolidation / Supply Area The highlighted pink zone (~3,100 – 3,160) acts as a critical decision area: Previously strong consolidation Now behaving as short-term supply / distribution Price has re-entered this zone after a strong impulsive move, which often precedes either: 📈 Continuation after absorption 📉 Rejection and mean reversion 🟢 Support Level to Watch Green level (~2,975) = key demand / equilibrium support If price fails to hold above the consolidation zone, this level becomes the first high-probability downside target. 📈 Momentum & Indicator Insight Lower indicator (momentum/RSI-style): Momentum is elevated, suggesting late-stage bullish push ⚠️ Rising momentum into resistance often signals exhaustion, not immediate continuation No strong bearish divergence yet, but risk is increasing near supply. 🧠 Projected Scenarios 🔼 Bullish Continuation (Less Probable, Needs Confirmation) Clean acceptance above 3,160 Successful retest of the consolidation zone as support Target: 3,250 → 3,400 🔽 Bearish Rejection (Higher Probability) Failure to break and hold above supply Formation of lower highs inside the pink zone Targets: 🎯 2,975 (first support) 🎯 2,720 (range low) 🧩 Professional Summary ETH is currently in a distribution phase within a higher-timeframe range. Buying at this level carries unfavorable risk-to-reward unless a confirmed breakout occurs. Patience is key — let price show acceptance or rejection before committing.