July 17 ETH

Last night, ETH surged significantly, and today’s direction will once again face a choice.

In terms of fundamentals, the U.S. June CPI came in below expectations. After seasonal adjustment, the month-over-month figure recorded its first decline in six years. Following the sharp drop in Non-Farm Payrolls earlier in the month, this adds further fuel, and the market has cut its expectations for additional Fed rate hikes within the year. On the other hand, the U.S. and Iran continue to exchange blows: the U.S. carried out another round of strikes against Iran, hitting dozens of military targets near the Strait of Hormuz and in Iran’s coastal areas; and earlier in the day, Iran’s Islamic Revolutionary Guard Corps said they attacked U.S. military facilities in Kuwait. ETH has pulled back from the highs for a correction.

From a technical perspective, on the daily chart, yesterday’s price action rebounded from near the June 26 low and is close to the main resistance pressure level. On the 4-hour chart, late last night saw a push higher that reached the 1896 space pressure level before entering a corrective adjustment. Today’s main tests are the 1846 support below and resistance around 1900 above. On the 1-hour and 15-minute structures, there is still hope for another move higher.

In terms of execution, although price is meeting resistance at the first target level above, the overall trend has not changed much. In the short term, price is still in a bull-side consolidation. Therefore, today we should still look for long opportunities. Strategy 1: When price retraces to around 1846, it will again provide an upside signal to go long; stop loss below 1827; target 1900. Strategy 2: Go long on a 4-hour close breaking above 1909; stop loss below 1860; targets 1983 and 2034. Strategy 3: Today’s bull-bear dividing line is 1794. If price fails to give a bullish signal, it will turn lower and drop to break below 1794