Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.

The 4-hour market structure is bearish. Buyers can wait for a deeper pullback, while sellers eye the $1680 mark.

Ethereum has shown significant volatility over the past week as the price fluctuated from $1555 to $1714. January had been bullish, but that momentum seemed to be waning over the past week.

Read the Ethereum price prediction for 2023-24

A breakout above USD 1680, ETH is likely to bounce higher towards USD 1760. In the coming weeks, that move could also be as high as $2,000.

The shorter-term outlook is not as strongly bullish. Traders looking to buy the asset can wait for a further dip, or wait for an SFP of $1680 to enter short positions.

From a risk-to-reward perspective, a breakout above $1680 and a retest would require careful planning and risk management from a bull’s perspective.

Imbalance, order blocking and a support level offer some concurrence

Source: ETH/USDT on TradingView

The H4 structure turned bearish as the February 3 higher low at $1625 was broken on February 5. Due to this downward breakthrough, the H4 FVG (white) was retested. A small dip in the FVG may not be enough to effect a strong move upwards.

The RSI stood at 46 and showed weak bearish momentum. The CMF was at +0.05 and about to show strong capital flow into the market, which was a bullish finding.

Beneath the inefficiency was a 4-hour bullish order block (red), which was converging with a horizontal support level at USD 1565. While blind bids may not be the solution, bulls may be waiting for a bullish reaction from the $1560 area.

A bullish structure break on the 1-hour chart around this area could give buyers enough confidence to enter a long position targeting $1680. The stop loss can be set below $1535.

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From a risk-to-reward perspective, a breakout above $1680 and a retest would require careful planning and risk management from a bull’s perspective.

OI and spot CVD fall along with the price, when will the recovery start?

Source: Coinalyse

The Open Interest increased during times when the price peaked in the short term. Similarly, OI fell as the price moved lower.

This meant that the majority of the market preferred not to let ETH pumps fade on shorter time frames and emphasized a bullish bias. However, it would take a surge in OI alongside prices to start the next leg higher.

Liquidation data showed $5.3 and $2.99 ​​million dollars in long positions being liquidated within two hours of trading on Feb. 5.

More long liquidations can be expected as the price hits $1560, and a spike in this metric followed by a sharp move back above $1590 may signal buyers that the local bottom has been reached.

Meanwhile, spot CVD has been falling for the past two days. This was in line with the slump ETH saw over the same period.

This post Ethereum [ETH] bulls, watch for a reaction to these levels to buy

was published first on https://ambcrypto.com/ethereum-eth-bulls-watch-for-a-reaction-at-these-levels-to-buy/


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