Ethereum traders are on high alert as ETH prepares for a textbook "supply test" before a potential sharp reversal, according to technical strategist CoreliquidityLab. The 1-hour chart shows price action approaching a major supply order block (OB) in the $4,755–4,760 range, following a clear Break of Structure (BOS) and Market Structure Shift (MSS). The stage is set for a classic liquidity grab into this resistance zone.
Here’s the tactical breakdown:
- **Supply OB:** $4,755–4,760 — watching for liquidity sweep and possible rejection.
- **Demand Zone:** $4,300 — the first major support if the drop materializes.
- **Trade Plan:** Wait for confirmation inside the supply zone, then look for a short entry targeting the prior swing low.
Traders are urged to exercise strict risk management and patience, as the setup points to a controlled bearish move rather than a sudden market collapse. If sellers defend the OB, a swing lower toward $4,300 could quickly unfold.
With ETH facing intense demand from institutions and a historic supply shortage still looming in the background[4], short-term traders are bracing for swift volatility—but smart money is always prepared for the turnaround. The next few hours could redefine ETH’s direction in August 2025.