On the 5th Day of ETHmas...a Pulllback to the H4 Demand Zone!ON THE 5TH DAY OF ETHMAS, MY TRUE LOVE GAVE TO ME....A PULLBACK TO THE H4 DEMAND ZONE....
OK, so our ETH trading plan is playing out as expected. Please see my previous posts from the first part of November until now to see how we got here. Since the last post, we have pushed up to our first TP Target and moved all the way up to the Daily Zone. This is a Daily Supply Zone, so it is expected to show some resistance.
Where are we now:
At this point, the market is struggling between the H4 BOS UP and Return to the Source that signaled its time to buy again...and this Daily Supply Zone that is saying..."Not so fast...you have to get past ME first".
Why This Matters:
A Daily Supply Zone is still stacked with sellers waiting to push the price back down. So, it will take some strength from this H4 momentum to break past the Daily Zone. It almost never does this the first time, and is extremely rare to do it without building a solid floor on the way up. All we are seeing right now is ETH pulling back to the H4 Demand Zone. We had several strong H4 bull candles up, and there was not a Demand Zone in place until this one around 2975 -3025. The market HAS to pull back to these type of zones for the strength to continue.
What to Expect from here:
At or inside of this H4 Demand Zone, we need to see confirmation that the buyers are really ready to push this back up. We need to watch the 15 min time frame and look for a 15 Min BOS UP outside of this H4 Demand Zone, Plus a strong retest and bullish rejection out of the zone. The 15 min will show us this first. Ideally, we also want to see an H4 Candle close back up above this zone and retest as well. With that signal, we are back to the bullish trend and headed for the H4 Supply Source as shown before...(3450 - 3560).
Now, the Daily Supply Zone that threw this down to start with will STILL NEED TO BE TESTED AGAIN, so expect more resistance if we push back up to it (3108 - 3215). We need to break through the bottom level first and then retest the top (this recent high of ~3215).
A rejection again at this Daily Supply Zone is going to lead to all future Christmas gifts being cancelled. OR a break of this H4 Demand Zone were in now will lead to the same. This is a MUST HOLD area for the bulls now! If this zone fails...."Nobody's Gettin' Nuttin for ETHmas!"
