ETH to Bounce up from 2280
2025-02-12
Category: None

Key Observations:
Session Analysis & Structure:

HOD (High of Day) and LOD (Low of Day) are clearly marked.

Tokyo session is consolidating near the LOD (2.97%), which could indicate the formation of a potential W pattern for a reversal.

The New York session completed a significant bearish move after peaking at iHOD (5.03%), typical of a US session reversal.

EMA & Trend Dynamics:
The 10/20/50 EMAs are stacked bearishly, with price hovering below the 50 EMA.
The 200 EMA is acting as a significant overhead resistance, and price needs to break and hold above it for a bullish shift​.
Indicators:

RSI Divergence:
There are multiple bullish divergences on RSI at the LOD, which suggests weakening bearish momentum.

Stochastic & MACD:
Both indicators are starting to curl up from oversold levels, signaling a potential reversal.
Volumes & Candlestick Patterns:

PVSRA volume spikes indicate possible Market Maker activity at the LOD, which aligns with a trapped traders scenario.

Look for Stopping Volume Candles (SVC) at this level to confirm a reversal​.

Strategy Suggestions:

Aggressive Long Entry:
Enter near the LOD if you see a W formation confirmation with a stop just below the LOD (2.97%).
Target: 200 EMA, followed by the HOD.


Conservative Long Entry:
Wait for a Break, Close, Retest (BCR) of the 50 EMA for confirmation of a bullish reversal.
Target: Midway between the 50 EMA and 200 EMA.

Bearish Continuation:
If price breaks below the LOD with strong volume and no SVCs, look for continuation towards the next support zone around 2,550.
