Don’t rush in now—we’re in the reaction phase, not the expansion.

$ETH — Rejection at Supply, Pullback or Reload Before Expansion?

The 1H structure on $ETH shows a clean transition from accumulation into expansion, followed by a sharp rejection at a well-defined higher-timeframe supply zone around $2,380–$2,420. Price impulsively tapped this zone and immediately printed a bearish displacement, signaling strong seller presence and likely institutional distribution.

The rejection wick and follow-through confirm this is not just profit-taking — it’s a reaction to liquidity sitting above previous highs. The market grabbed buy-side liquidity and reversed, which is classic smart money behavior.

Currently, price is retracing into the $2,330–$2,350 region. This zone is critical. It aligns with a short-term imbalance and could act as a decision point:

Holding this zone → potential continuation with another attempt at breaking supply

Losing this zone → opens downside into the $2,230–$2,250 demand area (highlighted in your chart)

Momentum-wise, the trend is still bullish on the higher timeframe, but this lower timeframe rejection introduces short-term weakness. The structure remains intact unless we start printing lower lows below the highlighted demand.

What stands out is the inefficiency left during the impulse move up — price may seek to rebalance that before any continuation. This supports a possible deeper pullback before the next leg.

Trader’s Insight:
Patience here is key. Chasing highs into supply is risky. The smarter play is either:

Wait for confirmation of strength above $2,400

Or let price come into discount zones and look for clean entries

Right now, this is a reaction phase — not the expansion phase.

#WCTCTradingKingPK