Ethereum continues to demonstrate resilient strength, defying traditional technical signals like overbought divergences. As the saying goes: "If I become a demon, what can Buddha do to me? If I become Buddha, the world has no demons." In other words, when momentum is this strong, logic often takes a backseat. When the market appears irrational, it may simply be on the verge of a major move.
š„ The āSecond Pancakeā Formation ā What It Means
On the hourly chart, Ethereum is forming a rounded bottom with signs of a cup and handle pattern. As long as price holds above the handle, bullish momentum remains intact. If this structure breaks down, however, it may signal a short-term reversal ā so risk management is key.
Critical Levels to Watch:
Bullish Scenario:
A breakout above $3808 could invite aggressive long entries.
A sustained move above $3812 opens the path to $3852 and potentially $3880.
Bearish Scenario:
A breakdown below $3754 may trigger short setups.
Below that, downside targets include $3700 and $3630 on the 4-hour chart.
šÆ Key Strategy Tip: If the cup and handle pattern fails, consider taking profits or trimming long positions. Donāt risk a full position just to chase diminishing gains ā "Donāt lose a fish for the sake of soup."
š M-Top Development & Trendline Watch
For bears to gain traction, the āsecond pancakeā needs to establish an M-top pattern. This requires:
A break below the yellow trendline (visible on the hourly chart).
A confirmed move below $3700.
Until then, momentum still favors the bulls, especially with potential volatility around the U.S. stock market open tonight. Watch volume closely ā itās the heartbeat of breakout confirmation.
Final Note:
These strategies are crafted manually, based on real-time observations ā no AI involved. The goal is clarity and effectiveness. Patience pays off in the markets just like with cooking: good dumplings take time. šš¦
ā $ETH
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