- Ethereum first swept liquidity below before reaching the previously marked supply zone—signaling smart money was one step ahead
- Current price action shows liquidity below on higher timeframes, but above on lower timeframes, creating a tug-of-war setup
- The nearby demand zone may not hold if ETH decides to collect the liquidity sitting right beneath it
In the previous Ethereum analysis, we pointed out a very specific supply zone that looked ripe for a reaction.
But ETH didn’t care about textbook entries. Instead, it dipped first—taking the liquidity we had been watching—and then moved up toward the supply. Classic behavior.
Now here’s where it gets interesting.
That initial supply didn’t cause any real reaction. Why? Because the price already did its job.
The price had cleaned up the liquidity below before even touching it, so once it got there, it wasn’t about selling—it was about accumulating more liquidity.
And that’s exactly what happened. ETH continued pushing up, reaching the higher H4 supply zone.
This pattern? It wasn’t luck. If you’ve been tracking these updates, it probably felt familiar—like watching the same play unfold again and again, just with new levels and fresh liquidity traps.
What Happens Now?
Right now, Ethereum has a lot of liquidity sitting below on the higher timeframes.
But zoom into the lower timeframes and you’ll see something completely different: liquidity is stacked above the current price.
So what does that suggest? Two opposing forces.
On one side, there’s a clear interest in revisiting lower zones (especially because that nearby demand has exposed liquidity beneath it). On the other, shorter-term momentum could still drag price higher first to collect orders up top.
And if you’re looking at that demand zone thinking it’s going to hold… be careful. The fact that it has liquidity sitting right below makes it fragile.
It might bounce—but only to fake people out, draw in buyers, and then drop straight through it.
Seen that move too many times.
Final Thoughts on Ethereum’s Setup
Right now, ETH looks like it’s caught in a setup that’s more about timing and traps than straight technicals. It might spike up to sweep lower timeframe highs before turning back down to grab what’s been left below.
Or it might just take the short path straight down.
And remember—these are potential outcomes, not guarantees. The market doesn’t owe us anything. It’ll move where liquidity is and where participants get too confident.
If you’ve been trading long enough, you’ll recognize this feeling: the second something looks too obvious… it usually isn’t.
If you’re not seeing these moves unfold in real time, go back and re-read the last analysis. It’s all there, mapped out before it happened. We don’t predict the future—but we sure as hell read the signs.
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