Ethereum: Smart Money Reversal After Stop Hunt?In the previous update, we warned that Ethereum might drop lower before any meaningful bounce — especially if it failed to hold the midline of the ascending channel. That scenario played out exactly as anticipated.
🟡 Price action summary:
ETH broke below the midline of the weak ascending channel, hunted the liquidity below recent lows, and tapped into the key bullish order block near $3,490 – $3,520. Price is now reacting to this zone with early signs of a reversal.
📌 Key observation:
Midlines of weak or low-momentum channels often act as liquidity traps in smart money models. Buying at these levels can be extremely risky — especially during corrective or distribution phases.
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📚 Educational Note:
Never enter long positions solely at the midline of a weak ascending channel, especially when there’s a high probability of liquidity sweep below. Smart entries usually occur at order blocks formed after stop hunts.
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🎯 Next steps:
Wait for confirmation (such as internal BOS or FVG closure) before entering longs. The structure suggests a potential move back toward the upper boundary of the channel if this OB holds.
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