- ETH has rallied strongly and is now testing the range highs around $4,100.
- The most likely scenario is a direct tap or wick above the range highs — this is a classic spot where the majority expects continuation, but also where deviations (fakeouts) frequently occur.
- If price closes above and holds, it could trigger further upside. However, the risk/reward (RR) for fresh longs here is not attractive after such an extended move.
- A deviation above range high (quick push above, then close back inside) is possible and would be a bearish signal in the short term.
- After this wave, any deep dips in ETH will likely be a high-conviction buy, given the strong bullish momentum.
ETH is showing extremely bullish momentum as it approaches a major weekly resistance at the range high. The obvious play here is a sweep or break of this level, but with the move being so extended, a deviation or fakeout becomes increasingly likely. While momentum is still up, waiting for a dip or failed breakout (deviation) is a better risk/reward play than chasing longs here. Any meaningful pullback will likely present an excellent buying opportunity given the macro strength.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.