ETH/USD Analysis: Potential Drop from the 2047 OB to 1760
Ethereum (ETH) is currently approaching a key Order Block (OB) at the 2047 level. Based on price action analysis and market structure, there is a high probability that ETH will face strong resistance at this level, leading to a potential bearish move towards the 1760 level.
Key Observations:
Order Block (OB) at 2047:
This level represents a significant supply zone where institutional traders might initiate sell positions.
Historical price reactions at this level indicate strong resistance.
Market Structure:
ETH is currently in an uptrend but approaching a key resistance zone.
If price rejects 2047, it could signal the beginning of a short-term bearish correction.
Liquidity & Stop Hunt:
Many traders might have stop-loss orders above 2047, making it an attractive zone for liquidity grabs before a potential reversal.
A fake breakout above this level could trigger a sharp sell-off.
Target Zone at 1760:
This level aligns with a previous demand zone and a key Fibonacci retracement level.
If ETH fails to maintain bullish momentum, 1760 could act as a strong support where buyers may re-enter the market.
Trading Plan:
Short Entry: Around 2047 (Confirmation with bearish price action, e.g., rejection wicks, bearish engulfing candles).
Stop Loss: Above 2080 (To avoid stop hunts and fake breakouts).
Take Profit: 1760 (Key demand zone and potential reversal area).
Conclusion:
ETHUSD is showing signs of potential rejection at the 2047 OB level, which could lead to a move towards 1760. Traders should monitor price action closely for confirmation before entering short positions. Risk management is essential, as breakouts above 2047 could invalidate the bearish scenario.