Gulf Stream Notes

The ETH 1-hour chart is forming a range-bound oscillation at the top, with obvious fake breakouts at highs and lows. As mentioned before, rapid moves within a range are often deceptive. So in recent days, when seeing fast moves on smaller timeframes, it’s both tempting and panic-inducing! It’s hard to tell direction, feeling like the manipulative whales are repeatedly squeezing both longs and shorts! In reality, switching to the range view, it’s just back-and-forth oscillations within the box. When the market undergoes a three-segment adjustment, it often signals the end of a trend. When the three segments end within the range, it also means the market is about to break out of the range and escape the box’s constraints. In the coming days of this week, focus on the compression of the RB pattern. Once price breaks out of the range adjustment, the probability of going up or down is roughly 50-50. However, the current background trend is an upward move, so a breakout to the upside is more likely. Since it would be a real breakout, there will inevitably be a deep pullback to shake out some retail investors before enough momentum builds for a rally. Therefore, for long positions, it is recommended to reference the support at the previous structural level around 1680 on at least the 4-hour timeframe, and try to enter in batches to establish a base position, aiming for a mid-term hold.

$ETH