7.17 ETH morning trading thoughts

After yesterday’s surge to a high, Ethereum met resistance and pulled back. The current price is trading near the 1900 level. From the 1-hour cycle, the price is consolidating at the highs and then declining—dropping below the short-term moving averages—so the market has entered a pullback and correction phase in the short term.

This rebound started around 1810 and the highest point reached the 1930 range. The bulls completed a round of volume-driven upward push; however, above 1930, sell pressure has been heavy. Multiple attempts to push higher failed to hold the level. In the short term, longs’ profit-taking has clustered and exited, making shorting a very attractive setup in terms of risk-reward.

Trading plan:
1) Short positions: Set up a light short position around 1870-1890. Downside targets are 1840 and 1810. If you didn’t manage to catch the high-level short yesterday, you can wait for a modest rebound and then enter.
2) Long positions: Buy on a pullback around 1800-1780. Set a stop loss at 1750. Upside targets are 1840 and 1900.