7.20 ETH short setup

Entry: 1878 - 1895 short
Defensive stop-loss: around 1910
First target: 1865 - 1870
Second target: 1850 - 1858
In the early session, ETH spiked higher and hit the 1891.20 level as the session high. After that, bulls lacked follow-through buying strength, and the price shifted into a choppy range with a pullback. Each rebound’s peak gradually moved lower, while sell pressure above kept accumulating. This rally is a follow-through “risk-on” move tied to BTC; its own breakout momentum is severely insufficient. On the short-term 5-minute timeframe, the up-move amount has been continuously shrinking, and long profit-taking positions have been steadily exiting. After the prior low at 1850.95 was probed and then lifted, the market accumulated a large amount of short-term long positions across the range, creating an obvious need for profit-taking and a pullback. The 1878 to 1895 pressure zone is packed with positions taking profit and stuck capital; if no incremental funds keep entering to push the market up, it will be difficult to break the previous high and continue higher. Since the upside stop-loss defensive zone has strong suppressive force, and without a sudden positive catalyst that triggers a strong rally to break through the stop-loss level, this rebound is basically declared over, with ample room opened for downside pullback. Therefore, a wide entry range is set to facilitate staggered limit orders. Take profit in tiers and gradually lock in gains. Today’s core idea is to sell short primarily based on the overhead resistance zone, and to trade the pullback rhythm after the long-side momentum exhausts. $ETH