In this video, The Art of Crypto delivers a detailed technical analysis of Ethereum (ETH) using institutional “smart‑money” concepts. He begins by highlighting that ETH is currently in a rare price region not seen since early 2021, despite its underperformance in the current bull market. The analysis walks through multi‑timeframe demand zones (monthly, weekly, daily), fair‑value gaps, and value‑area confluences, explaining how large institutional traders enter positions via OTC and layered limit orders, creating retracement zones that can be exploited. He identifies two high‑probability entry zones – a discount zone around $2,820 and a premium‑discount overlap between $3,080‑$3,200 – supported by Fibonacci “golden pocket” levels, strong lows, and broken‑base patterns. Trade management advice includes placing stop‑losses just below the demand zones and targeting $7,000, $8.8 K, and a speculative $10 K level, with projected gains of 60‑150 %. Throughout, he promotes a free masterclass on trading strategies and encourages viewers to like, subscribe, and watch related videos on stop‑loss methodology. The overall narrative is bullish, positioning ETH for a significant upside driven by institutional buying patterns.
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What's up guys, back again with another video because I feel like you guys need to know this ASAP. Now this video we're going to be talking about Ethereum and why I think an Ethereum run is about to come. Now for those of you that scoff at the fact that Ethereum is already a really high market cap and it's not worth getting into Ethereum, especially also considering the fact that it has underperformed throughout this entire bull run, I urge you to hear me out because right now ETH is in a spot that we have not seen it back since the beginning of 2021 basically. And even looking at the Ethereum USD chart, it is looking pretty good. Right before I get into the video though, very important announcement, guys. The free masterclass is happening tomorrow in 24 hours. I'm going to go through the 3 biggest problems that is probably preventing you from making the type of money that you want from a bull run, the type of money that you know is possible from a bull run, and then I'm going to give you the solutions to that. Lastly, I'm going to give you a 3-step framework that you can use to just find success throughout this bull run. I only mention it in the start of this video because It's happening tomorrow. It's free. It's not going to be one of those webinars where I go through just really basic stuff and just spend half the time trying to sell you something. It's actually going to be valuable. Link to sign up is down below. See you guys in the masterclass. But without any further ado, let's jump right on into this Ethereum video. So taking a look at the weekly chart, in fact, we can even start off on the monthly chart because whatever's happening on ETH, as mentioned before, where ETH right now is, we have not been here for more than 3 years. So it's really good to just take a look at the big picture, see if we're missing anything. But taking a look at the monthly chart right here, this box that I drew out here is a monthly demand zone. Now, what is a monthly demand zone? Essentially, when you have this candle here is known as your drop, this candle here is your base, and this is your rally. This is a typical 3-candle, you know, demand-supply setup, similarly to how this was supply where you have the rally, this became your base, and this is your drop. Price eventually retraced into the base, and then boom, right? That was the top. Similarly, right now we are in a monthly demand zone. This is really important. This, by the way, is a concept that is rooted in smart money trading. It's rooted in institutional trading. There are very little retail traders that are using supply-demand this way. Majority of retail traders just think like, oh, you know, this entire zone is the supply and this entire zone is the demand. Not really. This zone here matters. Essentially, you got a really strong move down And then this candle right here, you can see the indecision throughout this entire monthly candle. Price went up, went down, eventually closed in a really small body. Now what's important to know here is what comes next. Right after that candle, you have an explosion towards the upside. Now this is very important because institutional traders especially, they cannot just place a market order and jump right into the market. They're just going to get screwed over by slippage, especially when you consider low liquidity asset pairs. Such as the majority of crypto that is not Bitcoin and Ethereum, they're going to get eaten up by slippage. And so the only way for these market makers— well, 2 ways for these institutional traders to get into their positions is number one, through OTC. Number 2, it's going to be through setting a lot of limit orders and waiting for the price to fill, ideally manipulating people so that they get stopped out at areas where they want them to be stopped out at or shaken out just through fear. And then, you know, they can buy their tokens at really cheap prices. And taking a look at the Ethereum Bitcoin chart, the part that matters here is the second part, limit orders. Because their position sizes are so huge, they cannot market order, so they have to place, you know, tens or hundreds of limit orders. And guess what happens when price shoots straight out of that zone? That's right, all of their limit orders are still open and they are not filled, which means they're not in the proper size that they want to be. And that's why you always have smart money retracement areas such as this, right? This is known as a fair value gap. Just to give this a little bit of differentiation. This is known as a fair value gap, and this is also known as a fair value gap right here. Now notice what happens when price taps into the fair value gap, right? Boom, straight up. Now I know it doesn't look like it's really quick because this is still a monthly candle after all, but does not change the fact that, you know, for example, even if we go to the weekly, you'll see the amount of fair value gaps, right? That's 1, 2 right next to each other. Price fills the fair value gap, boom, Right? Shoots straight out. This is a like this candle right here is not a candle where you need to be second guessing your decision, right? This is very clearly came in, came out. The reason why we want to look at these smart money retracement areas is is because when price shoots straight up, there is an imbalance in price. It goes so quickly that your limit orders does not even get filled and boom, you're off. Understand that in every fair value gap and especially at the start. Of very explosive movements. There are going to be a concentration of limit orders around this area that when price does eventually tap in, you get a strong reaction just like this. This is how you refine your supply-demand zones in accordance to the institutional traders. Now, more importantly is that in this area here, this is known as a value area, right? Notice how price forms a pretty tight range around this area before shooting out of here. The fact that you have a value area, in fact you also have previous history of trading around this area right there as well as over there, right? You keep getting rejected. This becomes a really important zone, right? This is a zone where traders are mostly fighting for just control, right? The bulls are going to be fighting to get it out of the zone and the bears are going to sell around this area like it will be a fair value for them to sell. But most importantly is that this is just lining up to a bunch of different confluences. The fact that this is happening on the monthly chart, the fact that you can also see this on the weekly chart by refining it down— like, if you're looking at the weekly chart, you're going to refine it down to just this blue box right here. It's going to be your demand zone. Price hasn't quite tapped into it yet. Some could say that you can refine this all the way like that, but you know, the fact doesn't change that you are right now in a monthly demand zone paired with a weekly demand zone paired with— take a look at this setup right here. This is drawn on the weekly chart. Boom! This is a consolidation pattern. It's a wedge pattern formation. Whatever it is, right now you've just touched the trend line. You have filled demand zone, and right below this area you have another demand zone from the weekly chart. This is also very similar to the concept that I talked to you about there, right? Where you have a straight down move, you have kind of an indecisive candle, and then boom, right straight out you shoot out of this area. Now price eventually does retrace back into this zone here, but in this case I probably wouldn't say that this is a part of that demand zone. I would say just there, hence why I draw this box here. So right now, or at least in the near future, Ethereum is in a great zone against Bitcoin. You will notice that Ethereum has been underperforming compared to Bitcoin ever since officially the 20th of December 2021, or like the end of 2021. It's been about 3 years so far because we're almost at the end of 2024 now. Hard to believe, I know. Time flies. That Ethereum has been significantly underperforming compared to Bitcoin. Now, there are also moments when Ethereum significantly outperforms Bitcoin, and you saw that, especially for those of you who were in the 2021 bull run. You saw how quickly Ethereum went from basically 1K all the way up to like 4.5K, its previous all-time high, and it all happened in a matter of, you know, a couple of months. Now, am I saying that something like that is going to happen? Well, there is. If there is one spot, if There is one area where this is likely to happen. It's probably going to be here, and so you don't want to miss out on this. So this is the overview of the Ethereum Bitcoin chart. Hope you can see like what this is setting up to overall. Very bullish. Yeah, sure. There is always a chance that this can go lower, but as traders, we're always playing the probabilities in every scenario. We're always looking for the higher probability outcome. Yeah, sure. There is always a risk it goes lower, but what's the probabilities telling us based on all of the confluences that we have? I would. Assume that this is a sign that we want to start looking to buy Ethereum, especially against Bitcoin. Especially if you hold some Bitcoin, it might also be an interesting time to diversify. Now I know all of this sounds really cool and all, but obviously you got to give us the USD prices. I'm going to give it to you right now. But before I do, if you are enjoying this video so far, especially this analysis done from the perspective of institutional trading, please drop a like. I asked that you drop a like on this video; it truly helps me out a lot. And subscribe if you want to see more like this because. I will be posting way more of these market updates. So taking a look on the daily chart, here is the level that I would personally be looking at. This would be like an ideal level. This is also a demand zone. Now for those of you who are paying attention to the video from before, you will see immediately that this is a daily demand zone where you have a strong candle to the downside, indecision candle, and then boom, right straight out. So this becomes an area where if price were to return to, it's going to be a pretty good zone to buy. Now obviously this is very high up in terms of a premium discount. If I were to draw a fib from this low to this high here, we are currently very much in a premium. And the easiest way that I can explain this to you is that when you are in a premium, it's like me selling you an iPhone for like $5,000. You're probably not gonna buy it. Why? Because it's expensive relative to fair market price. Now if I were to sell you an iPhone for $500, right, an iPhone 15 Pro Max, Probably gonna buy it. Even if you don't use it yourself, you can sell this and make a big profit out of it. And this is the exact same way that the market makers are thinking. There's a discount and there's a premium. You ideally want to buy in a discount and you want to sell when it's in premium, not buy in a premium. But there are also exceptions to this rule. First of all, you have a clear demand zone over there. Ethereum Bitcoin chart is adding up to the fact that price is about to take off soon. And even if there is a retracement, like let's go back to Ethereum Bitcoin. Even if there is a retracement, you are unlikely to dip below this area because, well, first of all, this is a pretty— this is known as a strong low. Again, a little bit more institutional trading concepts, which I do teach in my Discord, but I will still cover a simple trick for you to use to determine if previous highs or lows will be broken or not. If a high, right, this high comes after taking out a previous high, that right there is known as a strong high. Now, if you have a low that comes after taking out a previous low, this is also known as a strong low. Now, what makes this strong low even stronger is that strong lows can graduate into becoming broken bases, where you have a liquidity sweep immediately followed by a break in structure. So you see this swing high here, that's your swing low. First of all, you sweep the liquidity here, and immediately with one strong move, you break structure towards the upside. This is known as a broken base. Similarly here, right, you sweep liquidity and immediately break structure to the downside. This is known as a broken base. Now obviously we're not going to hold this bearish broken base in as high regard because currently you have just dipped into a really strong discount PD array. Also another one of those fancy terms, but just literally means you just dip into an area where you want to look to buy. So when you dip into an area where you want to look to buy, you look for strong lows to form, you look for bullish broken bases, At the moment we're getting that. So when it comes to broken bases, the way you trade them is that you want to either look for a retracement back to the previous high or just back into some kind of PD array within the zone. And if you take a look at the PD array here, and if we were to dip, you know, let's say 5% down into this zone right here, let's say the range is about 5 to 8%. Now let's go back to our Ethereum Bitcoin chart, and if we were to dip between 5 to 8%, you will reach this demand zone right here. So everything is adding up. I know you cannot take it as an apple-for-apple, one-to-one comparison, but still, it's good to mark out this daily demand zone because this is probably where ETH is going to retrace back into. Just so happens that you also have a fair value gap right there, which price will fill the fair value gap, right? Remove the inefficiencies, right? Fill in the inefficiencies here and then back into the demand zone and then pump higher. And that's going to be a picture-perfect setup for Ethereum. And now in the event that Ethereum does go lower, because it's always good to think in terms of probabilities, right? We don't want to just come up with a scenario and run with it. We always want to be prepared for whatever happens. One of the— I always say this, but one of the best mindsets that a trader can ever have is the mindset of if this, then that. If this happens, then what do I do? So in this case, we're going to draw another fair value gap right here, and we are going to pay attention to the midpoint line. That's going to be about $2,820. Now, this daily fair value gap lines up with the premium discount zone, right? This will be in a discount. This level here at the 0.5 will also line up with the 0.618 in terms of the Fibonacci retracement, which for those of you who understand Fibonacci retracements know that this is known as the golden pocket. This is the magic number, and if the price were to retrace into this area, it's a very high likelihood that this is going to be very close to the bottom. Also happens to line up with the previous range For example, right here is your previous range high. Now I'm sure you can— some people can draw the range here, some people can draw the range like that, but it doesn't matter, right? We're just looking for confluences to potentially support our idea. And we can see that this graduates not just as a range high but also a previous support area, right? So this becomes a daily support resistance level. Price lining up everything. I guarantee you this is not a coincidence. This is just how the algorithms, the institutional money, the smart money, the market makers. This is just how they program these algorithms. Nothing in the market is a coincidence. Everything is priced in. And the earlier that you start to learn how to trade alongside institutional money, the better off you're going to be. So these are going to be the 2 zones that we're going to be looking for in terms of a retracement, high probability retracement areas to find a bottom: $2,820 and the zone between $3,200 to about $3,080, right? So these 2 zones are going to be great for buying into Ethereum. And of course, your stop loss is going to be just right underneath these zones. For example, if you buy into this demand zone here, you're going to place your stop loss underneath the demand zone. I have made a video on exactly the thought process that you should be taking when you are setting your stop losses. If you're interested in that, I'm going to link it down in the description box below. It's already on YouTube, it's free, but it does serve— like, if you have ever struggled with placing a stop loss, maybe you're wondering like, hey, you know, should I be using ATR? Should I, you know, What do I do? It's probably going to be a good video for you. And the target in this case for this trade is going to be above the all-time high for Ethereum. Like, even if we just look at Ethereum Bitcoin and we extrapolate, like we predict that this is going to go to even just here, right? That's going to be a 68% gain from here on out. But if we were to return back to the trend line, let's say sometime in this near future here, this is still going to be about a 150% gain against Bitcoin. Now again, not a 1-to-1 comparison, but if we just draw the lines out, we can probably get a good idea. 60% gain would put us roughly at the previous all-time high, maybe just a little bit above. And of course, if you were to go all the way to 150% gain, that's going to put you at about a $7.5K, $8K Ethereum, which I'm to use another one of these smart money concepts, draw it out, and let's check, take a look at the negative standard deviation expansions. And we can see that $7K does line up with the macro chart on Ethereum. So all of this is going to line up. So the first target for just the absolute long term is going to be at about $7K, and the second is going to be at $8.8K. Now I don't see Ethereum going much, much above. You will need quite literally close to a trillion dollars worth of money just to bring it above $10K, but still it is a likelihood. $10K Ethereum has been called for since as long as I can remember, and especially in the last bull market when the Ethereum ETFs were going absolutely But hey, you know, a man can hope. And because of that, we're just going to put a couple of levels above. So these are going to be the targets for Ethereum. Again, the Ethereum run is going to start soon. Like, but Ethereum does have its phases where it just blows everybody's mind away with the performance that it can bring. And I really hope that you are able to capture this. If you've watched until this point of the video so far and you haven't already signed up to the masterclass, you're really missing out. I'm going to be sharing a lot of value tomorrow, and I will see you there. Until then, subscribe so you don't miss the next video, and I will see you in the next market update. Cheers!
