Ethereum is showing early signs of ascending wedge formation, a trend often associated with potential reversals. With key support under pressure, a breakdown of this structure could send the price lower, putting the $1,500 level in focus as the next major target.
A rejection of key long-term support
Luca, in a recent update, highlighted that Ethereum price had been rejected within the lost long-term support range that he had referenced in previous PAT updates. This level also aligns with the 2D bull market support band at $2,180, making it a critical area to gauge market direction. This rejection suggests that buyers are struggling to reclaim key support, keeping the market under pressure.
Looking at the medium-term situation, Luca noted that since the beginning of February, Ethereum has been forming an ascending wedge pattern. Rising wedges are often considered warning signals because they can precede corrective moves, indicating that current bullish attempts may not have the strength necessary to sustain a rally.
Until there is clear evidence of a sustained breakout above both the lost high-dated support range and the 2D bull market support band, Luca advises traders to remain hedged and avoid overly aggressive positions. This strategy makes it possible to limit exposure while waiting for the emergence of a more definitive market trend. For now, Luca plans to remain hedged to mitigate medium-term downside risk.
The most likely scenario, according to his analysis, is continued consolidation in the lost high lead times. If bearish pressure persists, Ethereum could continue the long-term downtrend seen over the past few weeks. The next key long-term support to watch aligns with the early April 2025 lows near $1,500.
Ethereum shows potential for weekend trading
Ethereum could present interesting trading opportunities at the end of the week. Lennaert Snyder revealed that price action around key levels can offer short- and medium-term setups for active traders.
According to the analyst, Ethereum is currently at a low of $2,036, indicating a correlation with Smart Money Theory (SMT) and Bitcoin. This alignment suggests that ETH price movements could follow broader market trends seen in BTC, providing potential clues for trading decisions.
Snyder plans to go short if Ethereum sweeps and rejects buy-side liquidity above $2,099, using a bearish MSB as a trigger. Conversely, if the price rises above $2,099, it will target long positions towards $2,163, leveraging SMT with BTC and previously captured sell-side liquidity.
He also warned traders to pay attention to today’s Nonfarm Payroll (NFP) release, which may create volatility in crypto markets. Sudden market reactions could impact ETH price action, making careful risk management around the news event essential.
