Ethereum's ($ETH ) 1-hour chart signals potential bullish trend reversal, marked by a clear Market Structure Shift (MSS). This transition from bearish to bullish momentum is supported by key technical confluences, providing traders with opportunities for strategic entries and profit targets.
Key Observations
1. Market Structure Shift (MSS):
Ethereum has broken a significant lower high, confirming a shift from bearish to bullish momentum. This marks the beginning of a potential upward trend.
2. Liquidity Grab:
The recent price action swept below previous lows, triggering a reversal as buyers stepped in, creating strong demand.
3. Bullish Order Block (OB):
A critical support zone has emerged, where retracements are likely to find buyers. This OB offers a favorable entry point for long trades.
4. Fair Value Gaps (FVG):
Price inefficiencies in the chart suggest these gaps are likely to be filled, driving ETH higher as it seeks balance.
Trading Strategy
Entry Zones:
Look for pullbacks into the identified bullish OB or FVG zones for optimal entry points.
Targets:
First target: $3,750 – a critical upper liquidity area.
Second target: $4,087 – an extended level where profit-taking is anticipated.
Risk Management:
Place stop-losses below the OB to minimize risk and maintain a favorable reward-to-risk ratio.
Conclusion
With MSS confirmed and strong bullish confluences, Ethereum’s price action on the 1-hour timeframe suggests a move higher toward $3,750 and $4,087. Traders are advised to remain patient and wait for retracements into key zones before entering long positions.
As always, manage risk effectively and let the market come to you!
