- Liquidity Grab in Play: Ethereum’s price is retracing, possibly targeting nearby liquidity pools
- Two Scenarios: Price could either tap a closer liquidity zone or extend higher before continuing its trend
- Demand Zone Insight: A marked demand zone provides potential buying interest, but selling setups might dominate for now
On the 4-hour chart, Ethereum’s price action offers intriguing clues. Currently, the price seems to be slowly retracing the last impulsive move that grabbed liquidity.
On the left, we can spot a nearby liquidity pool, suggesting a possible target before the price decides its next move.
Scenarios to Watch
- Immediate Pullback: Ethereum might settle for the closer liquidity pool to fuel a potential continuation to the downside.
- Liquidity Grab Above: Alternatively, it could extend higher, tapping into a liquidity zone above, before showing signs of rejection.
For now, my bias leans toward selling opportunities, but that doesn’t mean a buying setup is out of the question. I’ve marked a demand zone on the chart—watch how price reacts to it for better clarity.
Risk Reminder
Let’s be real—no analysis offers 100% certainty. Markets are inherently unpredictable. The scenarios laid out are possibilities, not guarantees. Use careful risk management, and don’t forget, the market could surprise us.
Key Concepts Explained
- Liquidity Pools: These are areas on the chart where price often reacts due to clusters of stop-loss orders or pending orders.
- Demand Zone: A price range where strong buying interest might emerge, pushing the price higher.
Disclaimer: The information provided in this article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. Any actions you take based on the information provided are solely at your own risk. We are not responsible for any financial losses, damages, or consequences resulting from your use of this content. Always conduct your own research and consult a qualified financial advisor before making any investment decisions.
