EthereumShort
ETH/USD Daily Levels — February 1st, 2023
Updated
Looking at the Daily TF of Ethereum, we can see a very similar structure to Bitcoin, but a little more manipulated in the price action. The manipulation zone is a bit bigger and the accumulation zone is a bit smaller, where as Bitcoin, the move was made as clear as day.
Usually, I use Bitcoin to chart out the flows for the market and trade on Ethereum to juice higher returns for my portfolio.
Anyways, moving onto the chart patterns, we played this move upwards from $1,161 to selling at our distrubtion level at ~$1640. From here, i’ve been out of the market and waiting patiently for a new entry. I genuinely thought we’d come back down and retest the top of the accumulation zone (even if it were a scam wick), however, the market makers have a different game plan.
We’re still chilling in the distribution zone after the FOMC today and they’re printing a buy side sweep to suck in retail liquidity before pushing the price down. I wouldn’t be surprised if the top of the distribution zone hit as many people still need to offload their positions and are greedy, however, this buy side sweep we just printed on the daily looks very convincing.
It’s also something to note that the Shanghai testnet is dropping and the Ethereum team usually drops the new network upgrade at local tops in the market.
I believe that we should close out this distribution zone herer soon and retest the accumulation zone. Unlike Bitcoin, I don’t believe we’ll see the start of the yearly candle retest unless it’s a quick wick down as it’ll get bought up relatively fast, similar to what we saw in the FTX meltdown in November of last year.
This move we made completely reversed the entire FTX meltdown and we’ve returned to the mean as of now. However, we do need to retest the start of the uptrend or at least somewhere near the start of the uptrend and that would send the price of Ethereum down to $1287 - $1347, forming a higher low, before continuing it’s move upwards.
It’s going to be a while before we see all time highs again, most likely around the Bitcoin halving event, the same as the previous two cycles. In the meantime, we can continue milking the market and stacking more trading profits into our long term Ethereum holdings before the next bull market cycle.
Usually, I use Bitcoin to chart out the flows for the market and trade on Ethereum to juice higher returns for my portfolio.
Anyways, moving onto the chart patterns, we played this move upwards from $1,161 to selling at our distrubtion level at ~$1640. From here, i’ve been out of the market and waiting patiently for a new entry. I genuinely thought we’d come back down and retest the top of the accumulation zone (even if it were a scam wick), however, the market makers have a different game plan.
We’re still chilling in the distribution zone after the FOMC today and they’re printing a buy side sweep to suck in retail liquidity before pushing the price down. I wouldn’t be surprised if the top of the distribution zone hit as many people still need to offload their positions and are greedy, however, this buy side sweep we just printed on the daily looks very convincing.
It’s also something to note that the Shanghai testnet is dropping and the Ethereum team usually drops the new network upgrade at local tops in the market.
I believe that we should close out this distribution zone herer soon and retest the accumulation zone. Unlike Bitcoin, I don’t believe we’ll see the start of the yearly candle retest unless it’s a quick wick down as it’ll get bought up relatively fast, similar to what we saw in the FTX meltdown in November of last year.
This move we made completely reversed the entire FTX meltdown and we’ve returned to the mean as of now. However, we do need to retest the start of the uptrend or at least somewhere near the start of the uptrend and that would send the price of Ethereum down to $1287 - $1347, forming a higher low, before continuing it’s move upwards.
It’s going to be a while before we see all time highs again, most likely around the Bitcoin halving event, the same as the previous two cycles. In the meantime, we can continue milking the market and stacking more trading profits into our long term Ethereum holdings before the next bull market cycle.
Trade active
We broke down from the distribution zone and look like we're heading towards the accumulation area.
Related publications
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.