Ethereum dropped from $2,700 to $2,480, and this small retracement might not be over yet. Let me explain why.

We could be looking at a golden opportunity on $ETH for bullish continuation. As we can see from this move up, Ethereum hasn’t yet retraced any fair value gap, and the last fair value gap that remains open here is between $2,327 and $2,734.

In my opinion, this is the zone Ethereum could target to hunt the stop losses from the entire week, because Monday’s stop losses haven’t been taken out. That means a lot of traders who bought in this week have their stop losses set below $2,400.

That’s why we could go for those stop losses and trigger the fair value gap to continue upward. Also, a level I really like is the retracement area around $2,200. It would be a perfect zone to build for a bullish continuation.

Also, many people recently went heavy on leverage with Ethereum, buying in with big leverage—those could be liquidated in this zone to clear the way for bullish continuation and then push towards the $3,000 level.

So I’m staying patient to see how this new bullish phase unfolds.