Ethereum Breaks Out - What's Next?

Mastering POC & FVG in the Current Market

If you’re in crypto, you’ve seen the Ethereum chart this week.

It feels like just yesterday I was trading ETH around $2,500, trying to catch the perfect bounce for a long position and find a sweet spot to close the short.

Fast forward a week, and we’re suddenly getting used to a new reality: Ethereum trading above $3,400 — and now we’re talking about breaking all-time highs.

But do you really know why Ethereum rallied from ~$2,900 to $3,500 without a pause, when it spent so much time struggling below $3,000?

And more importantly, why did it stop at $3,500?

FVG Gaps & POC levels for ETH

A lot of traders assume that prices move randomly, and all you need to do is guess the direction right.

But if that were true, why does the price keep returning to the same levels over and over?

That’s where POC levels and FVG gaps come in.

Take a look at the chart above. You’ll notice 3 POC points, created in 2024 — the black lines on the candlesticks marked with a blue bubble on top.

Fascinatingly, all three were touched again at the $3,500 level — nearly a year later. That same price zone got tagged, and immediately after, ETH paused its uptrend and began consolidating.

Even more interesting — just above $2,500, there’s another critical element: a Fair Value Gap (FVG), formed on January 7, 2025.

🧙 Master, what are these Gaps and Levels? Why do they matter?

🟦 Time-Based POC (Point of Control)

The time-based Point of Control is the price level where the market spent the most time hanging out during a day/week/month.

It’s like the “comfort zone” for price, where buyers and sellers were happy to do business.

These levels often act like magnets later, drawing price back in or acting as support/resistance.

Example: If ETH hovered around $3,400 for 4 out of 7 days in a week, that would likely be your weekly POC, a key area to watch for reactions.

---

🟥 Fair Value Gap (FVG)

A Fair Value Gap shows up when price moves so fast that it skips over certain levels without much trading in between, kind of like jumping stairs two at a time.

These gaps often get “filled” later because the market likes to come back and rebalance areas it rushed through.

Example: On 7th of January, ETH dropped from $3,687 to $3,385 in one candle, and the next candle did not revisit the previous price - that gap is FVG. Smart traders often keep an eye on those zones for pullbacks or entries.

Remember the drop to $2,100 just 3 weeks ago?

ETH was fluctuating around $2,442, and we were watching for a 1-Day Cycle low. Then, news broke about the USA attacking Iran, and the market panicked.

Understanding that news-driven moves are often short-term, I started looking for where the price might find support.

I had eyes on two strong POC levels — $2,186 and $1,911 — based on the 2-Week timeframe (the larger the timeframe, the stronger the POC).

Price hit the closer POC at $2,186, dipped to $2,117, and bounced back above in the same candle. Within 2 days, ETH was at $2,410 — nearly +10%.

➡️ This trade was part of the high-risk strategy, which I discussed in my last email.

Master, how can I detect the POC and FVG levels myself using TradingView?

For POC:

• Search for “Time Price Opportunity”

• Choose “1 Week” or “2 Weeks” in the settings for the strongest magnets

• Look for black lines on your chart — these are your key support/resistance zones

For FVG:

• Use the “LuxAlgo - Inversion Fair Value Gaps” indicator

• Best results on 4H to 1D timeframes

Master, I have a long position in ETH. What can I expect next?

Here, we have to combine what we know about POC levels and apply cycle Indicators…