Ethereum is showing early signs of a rising wedge formation, a pattern often associated with potential reversals. With key support under pressure, a breakdown from this structure could push the price lower, putting the $1,500 level firmly in focus as the next major target.
A Rejection At Key High-Timeframe Support
Luca, in a recent update, highlighted that Ethereum’s price has been rejected at the lost high-timeframe support range he referenced in previous PAT updates. This level also aligns with the 2D Bull Market Support Band at $2,180, making it a critical zone for assessing market direction. The rejection suggests that buyers are struggling to reclaim key support, keeping the market under pressure.
Examining the mid-term picture, Luca noted that since early February, Ethereum has been forming a rising wedge pattern. Rising wedges are often considered cautionary signals because they can precede corrective moves, indicating that the current upward attempts may lack the strength needed to sustain a rally.
Until there is clear evidence of a durable breakout above both the lost high-timeframe support range and the 2D Bull Market Support Band, Luca advises that traders should remain hedged and avoid overly aggressive positions. This strategy helps limit exposure while waiting for a more definitive market trend to emerge. For the time being, Luca plans to remain hedged to mitigate mid-term downside risk.
The most probable scenario, according to his analysis, is continued consolidation within the lost high-timeframe range. If bearish pressure persists, Ethereum may continue the high-timeframe downtrend observed over the past few weeks. The next key high-timeframe support to monitor aligns with the early April 2025 lows near $1,500.
Ethereum Shows Potential For End-Of-Week Trades
Ethereum could present some interesting end-of-week trading opportunities. Lennaert Snyder revealed that price action around key levels may offer both short-term and mid-term setups for active traders.
According to the analyst, Ethereum is currently holding at the $2,036 low, which indicates a correlation with the Smart Money Theory (SMT) and Bitcoin. This alignment suggests that price movements in $ETH may follow broader market trends seen in $BTC, providing potential clues for trading decisions.
Snyder plans to enter shorts if Ethereum sweeps and rejects the buy-side liquidity above $2,099, using a bearish MSB as his trigger. Conversely, if price breaks above $2,099, he’ll target longs toward $2,163, relying on SMT with $BTC and previously captured sell-side liquidity.
He also cautioned traders to be mindful of today’s Non-Farm Payroll (NFP) release, which can create volatility across crypto markets. Sudden market reactions could impact $ETH’s price action, making careful risk management essential around the news event.
Featured image from Pexels, chart from Tradingview.com
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