Ethereum is showing the first signs of a rising wedge formation, a pattern often associated with potential reversals. With key support under pressure, a breakdown of this structure could send the price lower, bringing the $1,500 level into clear focus as the next major target.
A rejection for important support on a high time frame
Luca, in a recent one updatehighlighted that Ethereum’s price has been rejected within the high-timeframe lost support range he referenced in previous PAT updates. This level also corresponds to the 2D Bull Market Support Band at $2,180, making it a critical zone for assessing the market’s direction. The rejection signals that buyers are struggling to regain key support, keeping the market under pressure.
Examining the medium-term picture, Luca noted that Ethereum has been forming a rising wedge pattern since early February. Rising wedges are often considered warning signs because they can precede corrective moves, indicating that current upward attempts may not have the strength needed to sustain a rally.
Until there is clear evidence of a sustained break above both the high time frame lost support range and the 2D Bull Market Support Band, Luca advises that traders should remain hedged and avoid overly aggressive positions. This strategy helps limit exposure while waiting for a more definitive market trend. For now, Luca plans to remain hedged to limit downside risk over the medium term.
According to his analysis, the most likely scenario is continued consolidation within the lost high time frame. If bearish pressure continues, Ethereum could continue the downward trend of recent weeks. The next key long-term support to watch corresponds to the early April 2025 low around $1,500.
Ethereum shows potential for end-of-week transactions
Ethereum could offer some interesting trading opportunities at the end of the week. Lennaert Snyder revealed that price action around key levels can provide both short and medium term setups for active traders.
According to the analyst, Ethereum is currently at a low of $2,036, indicating a correlation with Smart Money Theory (SMT) and Bitcoin. This alignment suggests that price movements in ETH may follow broader BTC market trends, providing potential clues to trading decisions.
Snyder plans to short if Ethereum rejects and rejects buy-side liquidity above $2,099, using a bearish MSB as a trigger. Conversely, if the price breaks above $2,099, he targets longs towards $2,163, relying on SMT with BTC and previously committed sell-side liquidity.
He also warned traders to be aware of today’s Non-Farm Payroll (NFP) release, which could cause volatility in crypto markets. Sudden market reactions can impact ETH’s price action, making careful risk management around the news event essential.