ETH Price Setup: Why $2,840 Could Spark the Next Big Move
2024-11-07


  BINANCE:ETHUSD  has been underperforming compared to  BINANCE:BTCUSD   and some other major cryptocurrencies, yet recent developments hint at a potential shift. Despite facing a significant resistance cluster, ETH has shown resilience by  breaking above a key volume profile Point of Control (POC)   level on the higher timeframe, signaling the early stages of a bullish sentiment shift.

However, to sustain this momentum,  CRYPTOCAP:ETH   needs to conquer a critical resistance zone, marked by a 1-week Fair Value Gap (1W FVG) and a 1-day Order Block (1D OB) – a challenging area that will likely test ETH’s ability to break out.

 Chart Analysis: Key Levels to Watch 
Major Resistance Zone (1W FVG & 1D OB)
The most immediate challenge for ETH is closing above the resistance zone around $2,840. This area is crucial because it combines a 1W FVG and 1D OB, both of which create a barrier that ETH needs to break through for the next leg up.

A decisive close above this level on the daily chart would turn the 1D OB into a breaker block, potentially flipping it from resistance to support and laying the foundation for a more sustained bullish displacement.

 Volume Profile POC Breakout 
ETH has already broken above the higher timeframe volume profile Point of Control (POC), a positive sign that suggests market interest and liquidity are shifting upwards. This break above the POC adds to the semi-bullish case, as it often signals a potential move towards filling the FVG above.

 Entry Into the 1W FVG (SIBI) 
Should ETH successfully close above the $2,840 level, it would enter the 1W FVG, opening up the possibility for a larger upward move. Once in this zone, buyers could gain confidence, triggering additional buy-side liquidity and a rally towards $3,100 - $3,300.


 Trade Setups 
Swing Trade Setup

Entry: Look for a close above $2,840. Ideally, wait for a retest of this level to confirm it as a breaker block before entering long.

Target:
Primary Target: $3,100 - within the 1W FVG zone.
Secondary Target: $3,300 - higher end of the FVG, where resistance may intensify.
Stop Loss: Set below the 1D OB, around $2,750, to protect against a failed breakout and retracement.

Rationale: A breakout and successful retest of $2,840 would signal strength, allowing ETH to push into the FVG and potentially rally toward $3,300. If buyers are strong, this could lead to a medium-term bullish trend.


 Scalping Setup 

Entry: Enter long on quick pullbacks to $2,750 - $2,770, close to the 1D OB support zone, or during any small dips within this range.

Target:
First target at $2,840 for a quick profit.
Second target around $2,900 - $2,950 if momentum is strong.
Stop Loss: $2,730, slightly below the 1D OB level to protect against larger sell-offs.

Rationale: For scalpers, buying dips around the 1D OB level provides a quick entry with a high probability of retesting the resistance at $2,840. This setup allows for short-term gains while taking advantage of potential volatility near the key resistance area.


Looking forward to hearing your thoughts on this! 
Trade safe folks,
Cheers 