Based on the current ETH/USDT chart, Ethereum is trading around $3,706, showing strong bullish momentum recently. To identify a suitable entry point using Smart Money Concepts (SMC) and ICT principles while considering liquidity traps, here’s a possible scalp trade setup:
Trade Details:
• Position: Long
• Entry Point: $3,675 (near a recent demand zone and below minor liquidity pools to trap sellers)
• Stop Loss (SL): $3,640 (below the last structural low and a potential liquidity sweep area)
• Take Profit (TP): $3,780 (near a supply zone, aligning with a 1:3 risk-to-reward ratio)
Rationale:
1. Liquidity Traps: The $3,675 level aligns with areas where stop-loss clusters for shorts might trigger a reversal.
2. Demand Zone: This entry targets a demand zone that recently absorbed selling pressure.
3. Momentum: Ethereum has shown bullish continuation signals, with strong buying volume and a higher low formation.
Ensure to monitor price action closely for confirmation (e.g., bullish candlesticks or order flow imbalances) before entering the trade, as crypto markets can change rapidly.