Ethereum has seen a steep 60% drop from its highs, but recent activity suggests it might be entering a key transition phase. I’ve entered a long position here with a wide target in place, waiting for clear signs of bullish momentum before adding more size.
Technically, ETH is holding above a strong low on the daily and attempting to reclaim territory beneath a descending trendline. The market has been compressing tightly, and we could soon see expansion either direction. If this is indeed a base forming, it offers a great R:R.
The invalidation lies below the $1,500 daily close—anything below that negates the idea of a shift and brings the $1,000 psychological level into focus. Until then, I treat this as a potential bottom formation trade.
Technicals
• Downtrend structure: ETH has been in a macro downtrend but is showing early signs of compression and possible trend reversal.
• Descending trendline resistance in play. A daily close above it would be significant.
• 2000–2100 remains a psychological resistance zone.
• RSI & Stoch below neutral, indicating room to move up if pressure builds.
• Invalidation below $1,500 (daily close).
Fundamentals
• Massive accumulation: Over 2.11M ETH added to accumulation addresses in March alone.
• Supply squeeze: ETH on exchanges dropped to a 10-year low, down 16.4% from 7 weeks ago.
• Open interest rising: Futures market open interest climbed from 9.40M to 10.10M ETH in just three days—showing derivative trader confidence.
• Ethereum Pectra upgrade scheduled, promising long-term improvements in staking, fees, and transaction management.
• If bullish catalysts align, this accumulation phase could spark a breakout move back toward $2,800–3,000 in Q2.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
Technically, ETH is holding above a strong low on the daily and attempting to reclaim territory beneath a descending trendline. The market has been compressing tightly, and we could soon see expansion either direction. If this is indeed a base forming, it offers a great R:R.
The invalidation lies below the $1,500 daily close—anything below that negates the idea of a shift and brings the $1,000 psychological level into focus. Until then, I treat this as a potential bottom formation trade.
Technicals
• Downtrend structure: ETH has been in a macro downtrend but is showing early signs of compression and possible trend reversal.
• Descending trendline resistance in play. A daily close above it would be significant.
• 2000–2100 remains a psychological resistance zone.
• RSI & Stoch below neutral, indicating room to move up if pressure builds.
• Invalidation below $1,500 (daily close).
Fundamentals
• Massive accumulation: Over 2.11M ETH added to accumulation addresses in March alone.
• Supply squeeze: ETH on exchanges dropped to a 10-year low, down 16.4% from 7 weeks ago.
• Open interest rising: Futures market open interest climbed from 9.40M to 10.10M ETH in just three days—showing derivative trader confidence.
• Ethereum Pectra upgrade scheduled, promising long-term improvements in staking, fees, and transaction management.
• If bullish catalysts align, this accumulation phase could spark a breakout move back toward $2,800–3,000 in Q2.
Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.
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.