ETH/USD Analysis: Potential Drop from the 2047 OB to 1760
Ethereum (ETH) is currently approaching a key Order Block (OB) at the 2047 level. Based on price action analysis and market structure, there is a high probability that ETH will face strong resistance at this level, leading to a potential bearish move towards the 1760 level.
Key Observations:
Order Block (OB) at 2047:
This level represents a significant supply zone where institutional traders might initiate sell positions.
Historical price reactions at this level indicate strong resistance.
Market Structure:
ETH is currently in an uptrend but approaching a key resistance zone.
If price rejects 2047, it could signal the beginning of a short-term bearish correction.
Liquidity & Stop Hunt:
Many traders might have stop-loss orders above 2047, making it an attractive zone for liquidity grabs before a potential reversal.
A fake breakout above this level could trigger a sharp sell-off.
Target Zone at 1760:
This level aligns with a previous demand zone and a key Fibonacci retracement level.
If ETH fails to maintain bullish momentum, 1760 could act as a strong support where buyers may re-enter the market.
Trading Plan:
Short Entry: Around 2047 (Confirmation with bearish price action, e.g., rejection wicks, bearish engulfing candles).
Stop Loss: Above 2080 (To avoid stop hunts and fake breakouts).
Take Profit: 1760 (Key demand zone and potential reversal area).
Conclusion:
ETHUSD is showing signs of potential rejection at the 2047 OB level, which could lead to a move towards 1760. Traders should monitor price action closely for confirmation before entering short positions. Risk management is essential, as breakouts above 2047 could invalidate the bearish scenario.
Ethereum (ETH) is currently approaching a key Order Block (OB) at the 2047 level. Based on price action analysis and market structure, there is a high probability that ETH will face strong resistance at this level, leading to a potential bearish move towards the 1760 level.
Key Observations:
Order Block (OB) at 2047:
This level represents a significant supply zone where institutional traders might initiate sell positions.
Historical price reactions at this level indicate strong resistance.
Market Structure:
ETH is currently in an uptrend but approaching a key resistance zone.
If price rejects 2047, it could signal the beginning of a short-term bearish correction.
Liquidity & Stop Hunt:
Many traders might have stop-loss orders above 2047, making it an attractive zone for liquidity grabs before a potential reversal.
A fake breakout above this level could trigger a sharp sell-off.
Target Zone at 1760:
This level aligns with a previous demand zone and a key Fibonacci retracement level.
If ETH fails to maintain bullish momentum, 1760 could act as a strong support where buyers may re-enter the market.
Trading Plan:
Short Entry: Around 2047 (Confirmation with bearish price action, e.g., rejection wicks, bearish engulfing candles).
Stop Loss: Above 2080 (To avoid stop hunts and fake breakouts).
Take Profit: 1760 (Key demand zone and potential reversal area).
Conclusion:
ETHUSD is showing signs of potential rejection at the 2047 OB level, which could lead to a move towards 1760. Traders should monitor price action closely for confirmation before entering short positions. Risk management is essential, as breakouts above 2047 could invalidate the bearish scenario.
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.
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.