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ETH Trap & Drop Setup – OB Rejection + Bearish Channel

ETH Trap & Drop Setup – OB Rejection + Bearish Channel

Ethereum / US Dollar COINBASE:ETHUSD

πŸ“‰ Ethereum (ETHUSD) | 1H SMC Breakdown | Bearish Setup Explained

Another clean setup for the SMC gang. ETH just gave us a beautiful opportunity, respecting market structure, reacting to Order Block supply, and aiming to clean up sell-side liquidity. Let’s dive in πŸ‘‡

🧱 1. Structure: Bearish Channel Formation
ETH has been moving in a tight bearish channel, producing:

Lower highs (confirmed supply zones)

Lower lows (liquidity grabs + structure breaks)
This shows consistent bearish pressure.

🧊 2. Premium OB Tap + Rejection Zone
Price just retraced into a Bearish Order Block sitting in the Premium zone, right around $2,514.

πŸ’₯ OB zone is aligned with:

Upper channel resistance

Supply rejection

Clean inefficiency fill

Price wicked inside and immediately rejected = Smart Money active.

🧠 3. Retail Psychology Trap
Retail likely:

Longing support bounce

Placing stops under structure lows

Not respecting OB/imbalance narrative

Meanwhile, Smart Money:

Enters short from OB

Targets imbalanced zones

Eyes the $2,270 weak low

🎯 4. Liquidity Pool & Final Target
πŸ”» Target Zone: $2,270
This level is:

A weak low (high chance of being swept)

Sits at lower channel boundary

Acts as a liquidity magnet

Expect price to accelerate as it approaches this zone.

⚔️ 5. Trade Plan (Short Setup)
πŸ“ Entry: $2,514 OB Zone
πŸ” Stop Loss: Above $2,582 (structure break + OB invalidation)
🎯 Targets:

TP1: $2,460

TP2: $2,400

TP3: $2,270

⚖️ RRR: ~1:4+ – high precision trade

🧠 Key Concepts in Play:
Order Block Rejection

Premium Pricing Sell Setup

Bearish Channel Continuation

Liquidity Sweep Targeting

πŸ“Œ Chart Summary:
"Don’t chase candles – follow the narrative. OB tells the story, liquidity gives the profit."

πŸ“š Study the OB zone reaction. These setups repeat every week across assets if you know what to look for.

πŸ’¬ Drop “ETH OB SNIPER” in the comments if this is your kind of entry.
πŸ“ˆ Tag a trader who needs to stop fading Smart Money moves!



source https://www.tradingview.com/chart/ETHUSD/vJGwAT9S-ETH-Trap-Drop-Setup-OB-Rejection-Bearish-Channel/

source https://www.cryptomadden.com/2025/05/eth-trap-drop-setup-ob-rejection.html

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