ETH Trap & Drop Setup – OB Rejection + Bearish Channel

π 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 π
π§± 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.
π§ 2. Premium OB Tap + Rejection Zone
Price just retraced into a Bearish Order Block sitting in the Premium zone, right around $2,514.
π₯ OB zone is aligned with:
Upper channel resistance
Supply rejection
Clean inefficiency fill
Price wicked inside and immediately rejected = Smart Money active.
π§ 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
π― 4. Liquidity Pool & Final Target
π» 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)
π Entry: $2,514 OB Zone
π Stop Loss: Above $2,582 (structure break + OB invalidation)
π― Targets:
TP1: $2,460
TP2: $2,400
TP3: $2,270
⚖️ RRR: ~1:4+ – high precision trade
π§ Key Concepts in Play:
Order Block Rejection
Premium Pricing Sell Setup
Bearish Channel Continuation
Liquidity Sweep Targeting
π Chart Summary:
"Don’t chase candles – follow the narrative. OB tells the story, liquidity gives the profit."
π Study the OB zone reaction. These setups repeat every week across assets if you know what to look for.
π¬ Drop “ETH OB SNIPER” in the comments if this is your kind of entry.
π 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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