July 14 ETH

Yesterday, ETH surged higher and then pulled back, with the lower range slipping into a sideways trading range.

On the fundamentals side, on Monday, Trump announced the resumption of the United States’ maritime blockade of Iranian ports, hoping to force Iran to reopen the Strait; meanwhile, the U.S. military has carried out airstrikes against Iran for the third consecutive night. An Iranian diplomat had tried to seek some form of understanding on the issue of managing the Strait, but those efforts were disrupted by hardliners. The Iranian diplomat has also told the mediators that they hope to find a compromise solution, but in reality they are powerless. Platforms controlled by hardliners are also applying synchronized pressure. IRIB, Iran’s state TV station long controlled by hardliners, suddenly cut its signal when the chief negotiating representative attempted to hold talks with the United States. Negotiations between Iran and the U.S. have stalled.
On the other hand, renewed attacks have emerged between Yemen and Saudi Arabia, breaking the calm that has lasted since the 2022 ceasefire, and also increasing the risk faced by another key sea lane.

In terms of technicals, after the 4-hour chart yesterday tested downside with strong support at 1757, it pulled back again; meanwhile, it closed above the support at 1773. Overall, it still leans toward a bullish-sideways pattern and is expected to form a head-and-shoulders bottom. Only after the 4-hour chart fully breaks below 1757 would it be expected to continue lower to test the major support zone of the double top at 1713. On the hourly chart, the small bearish swing following the drop from the current 1845 high has temporarily ended; it is now consolidating and pausing to choose a direction. Near-term resistance is 1798.

For today’s trading, currently, wait for direction selection after the 1798–1757 range adjustment. Before the direction becomes clear, stay on the sidelines and wait.