Where is $ETH Headed? Analyzing its Current Movement

Happy Friday to everyone! I hope you all had a fantastic week. This week, I challenge you to venture beyond your comfort zone. It could mean meeting new people, trying new food, applying for that job you've been eyeing, or asking for that well-deserved promotion. Whatever it may be, go ahead and take the leap!

In today's post, we will discuss the recent price action of $ETH and how you could have taken appropriate actions.

Let’s dive in.

Sweeping Liquidity

On May 28th, we not only achieved a local high but also established a favorable range for $ETH, spanning from the 1850s to the 1927s.

When $ETH / $BTC creates a range like this due to a move up or move down, it is common to observe liquidity being swept on both ends before a natural movement occurs either to the upside or downside.

As evident from the above image, we successfully swept the 1846 liquidity and experienced a positive reaction, indicating a potential upward movement.

But what’s next…?

After successfully sweeping the 1846 liquidity for $ETH and observing positive price action, indicating a potential upward movement, it is now crucial to identify key areas where retracements or pullbacks could occur.

These significant areas, known as Supply & Demand zones, play a crucial role in anticipating potential retracements or pullbacks. As illustrated below, you can observe a short-term negative reaction on $ETH when it initially touched this Supply Zone.

These Supply and Demand zones are formed by the preceding move prior to a significant downward or upward movement. As indicated, the marked green candle preceding the major downward move represents the area of supply. Essentially, it is the starting point or origin of the substantial movement.

This particular supply area is where we could potentially witness a shift in buyer activity and an increase in seller presence. Consequently, these key areas, known as Supply & Demand zones, hold great significance in trading as they provide insights into why price action is either bouncing off or rejecting at current levels.

After retesting the supply zone four times, we witnessed a significant breakthrough beyond that area, consequently establishing a new demand zone on the 30-minute timeframe. This occurrence indicates the likelihood of further upward movement, with the potential to surpass the upper boundary of this range and reach towards the highs of 1927.

I believe that we might experience a push towards these highs over the weekend. Following this push, the market will likely provide us with an indication of the type of trend it intends to adopt.

Conclusion

Today's write-up is brief, but simplicity often yields the best results. It is worth noting that we frequently observe this type of movement preceding a significant market shift. Therefore, it is advisable to remain vigilant for a surge in trading volume within the next 1-2 weeks.

Always remember, there is no reason to force a trade. Let the market come to you..

I hope the above content has provided you with a better understanding of the overall market. If you have any questions, feel free to DM me on Twitter @TheOnlyNotice!