ETH - Last Line of Defense at $2,355
Right now, ETH bulls are facing their last line of defense at $2,355. If this level is lost, ETH could see a rapid decline of 10% or more. Let me explain. First, what even is this $2,355 level? It comes from the 3-day chart, where it acted as the primary resistance sellers defended before ETH crashed down to the $1,500 low. For reference on how important that level was historically, view this idea: https://www.tradingview.com/chart/ETHUSDT/yPN1Uj14-ETH-The-Battle-Begins/ Now that price is trading above it, buyers have been using this old resistance as a new level of support. This is clearly visible in ETH's recent lows on Coinbase. The first low after the major pump was established on August 23rd around $2,355.82. Then on September 2nd, price created a double bottom at $2,355.20. Today, with the CLARITY Act failing, ETH reached a low of $2,356.82, giving ETH a current triple bottom structure right at this level. However, if price cannot continue holding these lows, there is very little support between here and $2,150. If that level is reached, it becomes increasingly likely ETH goes lower still, something I will address in a future post if that scenario develops. The Trendline That Has Called Every Top Now for the real substance of this post. Let's dive into the black trendline and all the red X's outlined on the chart. This is arguably the most important thing to watch on ETH's daily timeframe, and it is likely to remain significant for the rest of this market cycle. I have this trendline drawn from the beginning of February 2026, and it has played the most significant role in marking ETH's tops throughout this entire price range. This is not a random line drawn after the fact. It is one I have been tracking and referencing for months. If you are surprised by how many times ETH has topped at this exact trendline, I highly recommend going back and reviewing some of my past work where it was outlined in real time. I first identified this trendline on May 5th as the upper boundary of a rising wedge scenario: https://www.tradingview.com/chart/ETHUSDC/bR1yw8lf-ETH-Both-Scenarios/ It then reappeared as the top of a bear flag I outlined here: https://www.tradingview.com/chart/ETHUSDT/gITAatsV-ETH-How-this-Drop-was-Predicted/ I extended it again to project where a local high was likely to form as ETH was rallying sharply to the upside in this idea: https://www.tradingview.com/chart/ETHUSDT/mTed2jNt-ETH-Where-the-Next-Local-High-Could-Form/ And finally, I extended both trendlines forward to current price action in this idea: https://www.tradingview.com/chart/ETHUSDT/cdDKsyGD-ETH-LTF-Signs-of-Weakness/ Why the Break Would Be So Important This is incredible market structure to see developing, because it strongly suggests this trendline reflects a level algorithmic and institutional players are actively using as a decision point. The more times a level gets respected without breaking, the more significant the eventual break becomes, since it likely triggers a wave of stop losses and trapped short positions all at once once it finally gives way. Because this trendline has correctly called nearly every one of ETH's local tops since February, a daily close above it would represent a genuine and clear shift in trend direction. Once that close occurs, it becomes highly likely that the true bull market for ETH has begun. So although the short term outlook does not look great if $2,355 breaks, keep a close eye on that upper trendline. Once it finally breaks, that is when it will be time to celebrate. I have also added all of the Fibonnaci levels for the current trend to watch if price does start dropping to the downside. I hope this brings you some educational value today.
