ANALYSIS #ETH ON 02/06: IS MM SETTING A LONG TRAP BEFORE DUMPING?
ETH is currently hovering around 2,000–2,004, having just dipped deep into the 1,955–1,966 range before bouncing back. Outlook for the next 24 hours: no chasing long positions, as prices are retracing into the supply cluster/FVG at 2,032–2,053. The easiest trick for MM: pump ETH up to 2,032 → 2,053, maybe even spike up to 2,058–2,066 to sweep those short stop losses and lure traders into a breakout long, but if it can't hold above 2,055, prices could easily fall back to 1,982-1,966/1,955.
Priority setup: wait for $ETH to retrace to 2,032–2,053, then look to short, with a stop loss above the spike at 2,066, take profit 1 at 2,004, take profit 2 at 1,982, take profit 3 at 1,966.
Alternative scenario: if ETH closes above 2,055 on the H1 and retests 2,032, ditch the short; at that point, prices could squeeze up to 2,076–2,147.
3-week outlook: ETH is still in the retracement phase testing the major bottom, not confirming a markup yet. To clearly reverse into an uptrend, it needs to hold above 1,955 and break 2,147; losing 1,955 poses a risk back to 1,914–1,843.
ETH is currently hovering around 2,000–2,004, having just dipped deep into the 1,955–1,966 range before bouncing back. Outlook for the next 24 hours: no chasing long positions, as prices are retracing into the supply cluster/FVG at 2,032–2,053. The easiest trick for MM: pump ETH up to 2,032 → 2,053, maybe even spike up to 2,058–2,066 to sweep those short stop losses and lure traders into a breakout long, but if it can't hold above 2,055, prices could easily fall back to 1,982-1,966/1,955.
Priority setup: wait for $ETH to retrace to 2,032–2,053, then look to short, with a stop loss above the spike at 2,066, take profit 1 at 2,004, take profit 2 at 1,982, take profit 3 at 1,966.
Alternative scenario: if ETH closes above 2,055 on the H1 and retests 2,032, ditch the short; at that point, prices could squeeze up to 2,076–2,147.
3-week outlook: ETH is still in the retracement phase testing the major bottom, not confirming a markup yet. To clearly reverse into an uptrend, it needs to hold above 1,955 and break 2,147; losing 1,955 poses a risk back to 1,914–1,843.