After an extended period of consolidation, Ethereum (ETH) has finally retested the critical support level of $2,100, which aligns closely with the 0.5 Fibonacci retracement level of the bullish trend that began in April. This confluence of technical factors strengthens the validity of this level as a strong demand zone.
The price action suggests that ETH may be gearing up for a bullish reversal, as it respects both horizontal support and key Fibonacci structure. Historically, the 0.5–0.618 retracement zone acts as a high-probability reversal area in trending markets, particularly when accompanied by volume stabilization and long-tailed candles on the daily chart.
Trade Plan: Spot and Futures Positions
Given the current structure, this presents a favorable opportunity to accumulate ETH on spot for the anticipated altcoin season. In addition, leveraged long positions in futures can be considered with clearly defined risk parameters.
Entry Zone: Around \$2,100
Stop Loss: \$2,000 (below key support)
Target Levels:
Primary Target: $2,500 (previous resistance / psychological level)
Secondary Target: $2,600 (major structure high)
The risk-to-reward ratio remains attractive, particularly if the broader crypto market continues its uptrend and Bitcoin maintains stability.
Market Context
Broader macro sentiment and the dominance cycle suggest capital rotation into altcoins could be near. With Ethereum leading major Layer 1s, a recovery from this level could catalyze a wider altcoin rally**, making this an important zone to watch for both intraday traders and swing investors.
⚠️ Note: Due to ongoing geopolitical tensions between Israel, Iran, and the United States, global financial markets—including crypto—may experience heightened volatility. Traders are advised to manage risk carefully and avoid overleveraging during uncertain macro conditions.
The price action suggests that ETH may be gearing up for a bullish reversal, as it respects both horizontal support and key Fibonacci structure. Historically, the 0.5–0.618 retracement zone acts as a high-probability reversal area in trending markets, particularly when accompanied by volume stabilization and long-tailed candles on the daily chart.
Trade Plan: Spot and Futures Positions
Given the current structure, this presents a favorable opportunity to accumulate ETH on spot for the anticipated altcoin season. In addition, leveraged long positions in futures can be considered with clearly defined risk parameters.
Entry Zone: Around \$2,100
Stop Loss: \$2,000 (below key support)
Target Levels:
Primary Target: $2,500 (previous resistance / psychological level)
Secondary Target: $2,600 (major structure high)
The risk-to-reward ratio remains attractive, particularly if the broader crypto market continues its uptrend and Bitcoin maintains stability.
Market Context
Broader macro sentiment and the dominance cycle suggest capital rotation into altcoins could be near. With Ethereum leading major Layer 1s, a recovery from this level could catalyze a wider altcoin rally**, making this an important zone to watch for both intraday traders and swing investors.
⚠️ Note: Due to ongoing geopolitical tensions between Israel, Iran, and the United States, global financial markets—including crypto—may experience heightened volatility. Traders are advised to manage risk carefully and avoid overleveraging during uncertain macro conditions.
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.
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.