- Ethereum briefly broke $4,200 support but quickly reclaimed it, signaling strong buying pressure and reinforcing the higher-timeframe bullish structure.
- On-Balance Volume remains in an uptrend despite price dips, indicating buying outweighs selling and confirming ongoing market strength.
- Traders can monitor OBV and reclaimed support levels to maintain positions while capturing potential continuation in Ethereum’s upward momentum.
Ethereum ($ETH) showed its strength when it regained a crucial level of support just under $4,200 in a single daily candle. In addition, the market response shows that there is continued buying pressure along with bullish structure on a higher timeframe.
Support Break and Immediate Reclaim
$ETH experienced a brief support break at $4,200, which many traders watch closely. Rather than confirming a downside move, Ethereum reversed sharply, regaining the level within one daily candle. This action reflects strong buyer activity and prevents a bearish trend from forming.
According to a recent tweet by IncomeSharks, the price action demonstrates strength rather than weakness. The pattern of liquidity sweeps followed by price recovery has occurred multiple times during this cycle. Each dip below support quickly returned, creating a layered foundation for ongoing upward movement.
On-Balance Volume Holds Uptrend
On-Balance Volume (OBV) continues to provide confirmation of Ethereum’s bullish structure. Despite price fluctuations, OBV has maintained its uptrend line, suggesting that buying pressure outweighs selling activity.
IncomeSharks notes that as long as OBV holds its current support, the higher-timeframe bullish structure remains intact. Traders may view this as a signal to maintain positions, while any breakdown in OBV could prompt partial profit-taking. OBV serves as a key tool in assessing whether buyers remain in control of market momentum.
Market Outlook
The present trading plans focus on monitoring OBV and price structure. If OBV maintains its upward price, Ethereum can keep riding the momentum with those reclaimed support level anchors.
If OBV moves below the support then the trader should decrease exposure to safeguard profits and expect potentially deeper pullbacks. The market structure around the reclaimed levels has been consistently strong which keeps reinforcing the bullish assumption that Ethereum remains in a higher-timeframe bullish formation.
Ethereum performed around $4200 and the OBV keeps increasing over time suggesting that the market favors resilience. Observers can monitor prices and volume indicators to understand if the strength of the market keeps behaving in a specific direction or elongating price action.
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