Ethereum traders are closely monitoring the potential for a significant response from a lower demand zone to evolve into a more extensive short-term recovery. One analyst has identified upside targets reaching as high as $1,850. It is presented as a short-term bullish setup following a significant price reaction from the $1,670–$1,690 demand zone. The analyst characterised the movement as a potential sell-side liquidity sweep, where the price dipped below previous lows before swiftly rebounding as buyers entered the market. Such a move is significant as it may indicate the juncture at which aggressive sellers reach exhaustion, allowing more robust buyers to start absorbing the available supply.
In this instance, the analyst indicated that Ethereum is beginning to establish higher lows, implying that buyers are progressively asserting greater influence over short-term price movements. The setup has not yet been confirmed, however. The initial significant test is positioned within the $1,735–$1,755 resistance zone. A break above that zone would bolster the case for bullish continuation and provide traders with a clearer indication that the previous bearish pressure is diminishing. Source’s plan outlines three bullish targets. The first is $1,750, characterised as the initial resistance and liquidity objective. The second is $1,800, at which point Ethereum would commence its transition into a higher-timeframe supply region.
The final target is 1,850, which the analyst identifies as a significant liquidity target and the upper boundary of that larger supply zone. The trade setup appears to be quite clear: ETH must maintain its position above the demand zone, establish a structure characterised by higher lows, and subsequently break through the $1,735–$1,755 range. If it does, momentum traders may begin watching the $1,800–$1,850 region as the next place where supply could return. Concurrently, this remains a short-term technical configuration rather than an indication of a comprehensive market reversal. Ethereum must demonstrate that buyers are capable of sustaining the reclaimed structure during pullbacks, rather than merely responding to demand after the fact.
The most definitive aspect of the arrangement is the invalidation level. Traders indicated that a robust close in the first half below $1,690 would negate the bullish perspective and imply that sellers have reasserted their dominance. That level is significant as it is positioned close to the lower boundary of the demand zone. If Ethereum loses it decisively, the liquidity-sweep argument weakens, and the bounce risks becoming just another failed relief move. Currently, Ethereum’s short-term chart provides a framework for bulls to maintain their position. The next question is whether ETH can transition from reaction to confirmation.