Ethereum [ETH] Bulls, look for a reaction at these levels to buy

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

  • The four-hour market structure is bearish.
  • Buyers may wait for a deeper decline, while sellers are eyeing the $1,680 mark.

Ethereum showed great volatility over the past week as the price fluctuated from $1,555 to $1,714. January was bullish, but that momentum seems to have waned over the past week.

Read the Ethereum price forecast 2023-24

A break above $1,680 is likely to lead ETH to rebound towards $1,760. In the coming weeks, this move may extend to $2,000 as well.

The short-term outlook is not quite as bullish. Traders looking to buy the asset can wait for further declines, or wait for SFP at $1,680 to enter short positions.

From a risk-reward perspective, a break above $1680 and a retest requires careful planning and risk management from an upside perspective.

The imbalance, blocking requests, and level of support provide some synergy

Source: ETH/USDT on TradingView

The H4 structure turned bearish when the higher low set on February 3rd at $1625 was broken on February 5th. This break-down saw a retest of the H4 FVG (white). A shallow decline in the FVG may not be enough to produce a strong bullish move.

The RSI was at 46, showing weak bearish momentum. CMF stood at +0.05 and was about to show a strong capital inflow into the market, which is a bullish result.

Under the inefficiency was a 4-hour bullish order block (red), converging with the horizontal support level at $1565. While blind bidding may not be the answer, the bulls can wait for a bullish reaction from the $1,560 region.

A bullish structural break on the hourly chart around this area might give buyers enough confidence to enter a long position targeting $1680. Stop loss can be set below $1535.

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From a risk-reward perspective, a break above $1680 and a retest requires careful planning and risk management from an upside perspective.

OI and Spot CVD are falling with the price, when will the recovery start?

Watch out for dips to these levels to bid on Ethereum

Source: Coinalyze

Open interest increased during times when the price experienced rapid gains. Similarly, OI decreased when the price fell.

This means that the majority of the market preferred the ETH pumps not to fade on lower time frames and highlighted the bullish bias. However, a sharp increase in OI along with prices will be necessary to start the next phase higher.

The liquidation data showed $5.3 million and $2.99 ​​million long positions liquidated on February 5 within two hours of trading.

More long sell-offs can be expected if the price reaches $1,560, and a top in this metric followed by a strong move above $1,590 could keep buyers away from reaching the local bottom.

Meanwhile, CVD has been down for the past two days. This was consistent with the decline seen in ETH over the same period.

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