Ethereum is showing early signs of forming a rising wedge, a pattern often associated with potential reversal. With key support under pressure, a breakout of this structure could cause the price to decline, making the $1,500 level the next major target.
Rejection with key support on high time frames
Luca, recently updatehighlighted that Ethereum price has been rejected at the level of the lost high timeframe support range that he referenced in previous PAT updates. This level also coincides with the 2D bull market support band at $2,180, making it a critical zone for assessing market direction. The rejection suggests that buyers are having difficulty regaining key support, keeping the market under pressure.
Analyzing the medium-term picture, Luca noted that Ethereum has been forming a rising wedge formation since the beginning of February. Rising wedges are often considered warning signals because they can precede corrective moves, indicating that current uptrends may lack the strength needed to sustain gains.
Until there is clear evidence of a sustained break above both the lost upper support band and the 2D bullish support band, Luca advises investors to continue to hedge and avoid overly aggressive positions. This strategy helps limit exposure while waiting for a more decisive market trend to emerge. For now, Luca plans to remain hedged to limit the medium-term downside risk.
The most likely scenario, according to his analysis, is continuation of consolidation within the lost upper time frame. If bearish pressure continues, Ethereum could continue the high-timeframe downtrend seen over the past few weeks. The next key long-term support to monitor coincides with the early April 2025 lows near $1,500.
Ethereum shows potential for end-of-week trading
Ethereum could offer some compelling end-of-week trading opportunities. Lennaert Snyder revealed that price action around key levels can offer energetic investors both near-term and medium-term setups.
According to the analyst, Ethereum is currently trading at a low of $2,036, which indicates a correlation with Shrewd Money Theory (SMT) and Bitcoin. This alignment suggests that price movements in ETH may follow broader market trends seen in BTC, providing potential clues when making trading decisions.
Snyder plans to enter a compact position if Ethereum rejects buy-side liquidity above $2,099, using the bearish MSB as a trigger. Conversely, if the price exceeds $2,099, he will target longs towards $2,163, relying on SMT with BTC and previously captured sell-side liquidity.
He also warned traders to keep an eye out for today’s non-farm payrolls (NFP) release, which could cause volatility in cryptocurrency markets. Sudden market reactions can impact ETH’s price action, making careful risk management necessary in the face of a news event.
