- Bullish Momentum Intact: Ethereum’s market structure on the H1 timeframe remains bullish, with potential for further gains
- Two Possible Scenarios: ETH could retrace to demand zones or grab liquidity before continuing upward
- Market Uncertainty: No scenario is guaranteed—Ethereum’s price movements remain unpredictable
Ethereum is on a roll, isn’t it? The price has recently hit the $3,500 mark, continuing its strong upward momentum.
For those tracking the markets, this rally has been a thrilling ride. But where might Ethereum go next? Let’s take a closer look, using some smart money concepts to lay out potential scenarios.
The Market Structure: Still Bullish
Looking at the H1 timeframe (each candlestick representing one hour), the market structure remains clearly bullish. Higher highs and higher lows indicate that Ethereum is still in an uptrend. However, as with any market, prices don’t move in a straight line forever.
One possibility? A retracement. Prices could pull back to interesting demand zones—areas where buying pressure is likely to kick in—and align with Fibonacci retracement levels. These zones could act as springboards, propelling Ethereum back upward.
Liquidation Grabs: What You Should Know
Alternatively, Ethereum could dip slightly lower to take out liquidity before continuing its climb. Now, what is liquidity, you ask? In the context of smart money trading, liquidity refers to clusters of orders sitting above or below key price levels.
These orders act as magnets, drawing the price towards them before it resumes its main trend.
Essentially, Ethereum might “hunt” these zones, triggering stop-loss orders or enticing sellers into the market, only to reverse and continue upward. It’s a move we’ve seen before in bullish markets.
Keep Your Perspective
That said, let’s be honest: the market can do whatever it wants. No analysis, no matter how well-reasoned, is foolproof. The two scenarios we’ve explored here—retracement to demand zones or liquidity grabs—are just some of the many possibilities.
A Word of Caution
This article is purely informational and not financial advice. Always conduct your own research and consult with professionals before making trading decisions.
Final Thoughts
Ethereum’s rally to $3,500 has been exciting, but whether it retraces or continues upward immediately, one thing is clear: the king of smart contracts still has plenty of momentum. Keep an eye on those demand zones, watch for liquidity grabs, and remember to stay flexible in your analysis.
The markets are alive and unpredictable—just the way we like them, right?
