$ETH - It looks like the price has rejected at the 1D Bull Market Support Band, which has been a strong reversal spot over the last couple of months, as I highlighted in prior PAT Updates, and this was largely expected.

Because of this, as covered in one of my latest alerts and as I’ve mentioned before, I’ve scaled back into my hedges, since this rejection opens the door for a deeper pullback on the mid-term back into the high-timeframe support range, marked in green, at $2.6K–$2.7K, before a more durable reversal to the upside.

In the bullish scenario, we’re going to see a double-bottom formation in the coming days, followed by a more durable reversal to the upside and a breakout above both the support band and the lost high-timeframe support range, aligning with the golden pocket between the 0.5 and 0.618 Fibonacci POIs.

In a more bearish scenario, we would see a breakdown below the high-timeframe support range, marked in green, which would be a clear structural invalidation on the high-timeframes.

In that case, I would fully hedge all of my spot holdings and take a more conservative stance on the long-term, meaning I wouldn’t rotate any of the capital I’ve raised from de-risking out of defensive positions and sectors any time soon.

Instead, I would wait for a durable bottoming formation to take shape before scaling out of my hedges and rotating that capital back into risk-assets and high-beta holdings.