📉 Ethereum ($ETH) has been on a thrilling ride, pushing through key levels and exciting investors. However, technical analysis suggests a pullback to $2,400–$2,600 may be looming. Let’s explore the data-backed reasons for this possible correction and how it aligns with historical market behavior.
---
Daily Chart: The Blueprint of Trends
The daily chart reveals Ethereum's macro movements and retracement zones, providing clarity on long-term price behavior. One critical area is the Fair Value Gap (FVG)—an unfilled price gap that could act as a magnet for ETH’s price.
---
Fair Value Gap (FVG): Ethereum’s Unfinished Business
🔄 What is FVG?
An FVG occurs when price moves rapidly, leaving a void where minimal trading activity occurred. For Ethereum, an FVG exists between $2,400–$2,600, created during a sharp upward move.
📅 Historical Precedent:
March 13, 2023: ETH dropped, forming an FVG.
September 11, 2023: ETH returned to fill that gap before rallying to $4,000+.
This pattern has repeated across multiple timeframes, making the current FVG a critical area to watch.
---
Other Indicators Supporting the Pullback
1️⃣ Supply Zone Resistance: Near $3,800, heavy seller activity has created resistance, halting ETH’s climb.
2️⃣ Volume Analysis: Diminishing trading volumes near recent highs suggest weakening momentum.
3️⃣ Moving Averages: Divergence between the 50-day and 200-day moving averages signals a potential reversal.
---
Market Psychology and Trader Behavior
Market sentiment plays a big role:
Anticipation of FVG: Traders expect a pullback and place sell orders, reinforcing the likelihood of ETH revisiting the $2,400–$2,600 range.
Liquidity Rebalancing: Filling the gap rebalances buy and sell orders, paving the way for a renewed uptrend.
---
What Happens After the Pullback?
A retracement to the FVG could set the stage for ETH’s next leg up:
✅ New Support Base: Filling the FVG often creates a foundation for upward momentum.
✅ Targeting New Highs: If demand outweighs supply post-pullback, ETH could rally past $4,000.
---
Strategies for Traders and Investors
💡 For Short-Term Traders:
Consider shorting ETH if it shows signs of moving toward the FVG range.
Look for candlestick confirmation (e.g., Doji or Hammer) for entry points.
💡 For Long-Term Investors:
Use the pullback to accumulate ETH at a discounted price.
The $2,400–$2,600 zone could be a strategic entry for those bullish on Ethereum's long-term potential.
---
Final Thoughts: Why This Matters
Ethereum’s possible pullback isn’t just speculation—it’s grounded in technical patterns, historical data, and market psychology. Recognizing these signs can help traders and investors make informed decisions, avoid traps, and seize opportunities.
💬 What’s Your Take?
Do you believe ETH will revisit the $2,400–$2,600 range? How do you use FVGs in your trading strategies? Let’s discuss below!#MicrosoftBTCInvestmentVote #XRPTrends #XRPReclaimsTop3 #BitwiseFiles10ETFs #Write2Earn!