Finally we are seeing altcoins regaining lost ground on Bitcoin and the second largest crypto by market cap is rallying strong.
Since ETH has such strength currently the opportunity to short is quite slim with high risk, however I think it's important to see where ETH may find some resistance or if a pullback was to happen, where would it come from?
The first level is the bearish orderblock level that has just been tapped as of writing. This area previously began the sell-off at the end of 2024 by confirming a new lower high. Naturally this area will present problems for the bulls and so a potential pullback could be initiated from this level. I would like to see a sweep of the stop loss positions just above the area and then a SFP to confirm the pullback is in motion.
Should the bearish orderblock fail the next clear level is the daily local top around $4000. A big even level and the area that started 5 months of downtrend. IMO the most likely level where longs will take profit. I do think if we see any form of consolidation between the bearish orderblock and the local high the bulls will look to carry the rally on, shallow pullbacks maintain momentum
Ten out of the last eleven days have been green candles with the only one day being red just above a key high, I expect if we are to get a pullback that bullish orderblock area ($2900-3000) to be retested as support. Therefor if any of the above areas initiate a pullback this area should provide support and therefor a long entry.
To clarify I am in no way bearish about Ethereum, this is just a plan for different eventualities.
Since ETH has such strength currently the opportunity to short is quite slim with high risk, however I think it's important to see where ETH may find some resistance or if a pullback was to happen, where would it come from?
The first level is the bearish orderblock level that has just been tapped as of writing. This area previously began the sell-off at the end of 2024 by confirming a new lower high. Naturally this area will present problems for the bulls and so a potential pullback could be initiated from this level. I would like to see a sweep of the stop loss positions just above the area and then a SFP to confirm the pullback is in motion.
Should the bearish orderblock fail the next clear level is the daily local top around $4000. A big even level and the area that started 5 months of downtrend. IMO the most likely level where longs will take profit. I do think if we see any form of consolidation between the bearish orderblock and the local high the bulls will look to carry the rally on, shallow pullbacks maintain momentum
Ten out of the last eleven days have been green candles with the only one day being red just above a key high, I expect if we are to get a pullback that bullish orderblock area ($2900-3000) to be retested as support. Therefor if any of the above areas initiate a pullback this area should provide support and therefor a long entry.
To clarify I am in no way bearish about Ethereum, this is just a plan for different eventualities.
Note
ETH breaks above the bearish orderblock so now it's important to monitor how price behaves to determine where TH goes from here as per the description above. Note
Ethereum has reached the Local High Resistance level, this is where I become cautious as historically the bears have won this battle a few times before. Momentum is definitely with the bulls but the risk to reward here for fresh longs is not great. I think we will have an answer by the end of the week to whether This level can be flipped or not for the remainder of Q3.
Note
Local high resistance rejecting Eth, now it's looking increasingly likely that Ethereum becomes rangebound for some time. Perhaps $2900-4000 range.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.