Based on the ETH/USD daily chart (as of July 20, 2025), here’s a detailed analysis:
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📈 Current Price Action
Current Price: \~\$3,744.60
Daily Change: +\$150.11 (+4.18%) — strong bullish momentum.
ETH has broken out above the Ichimoku Cloud and is currently in a strong uptrend.
Price is approaching a major resistance level at \$4,104.16.
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📊 Key Levels
🔼 Resistance:
\$4,104.16: Previous swing high and major resistance. If price reaches this zone, expect potential selling pressure or reversal.
🔽 Support Levels:
1st Support / 1st Target: \$3,093.88
Previous resistance now turned support.
Also aligned with a potential retest area.
2nd Support / 2nd Target: \$2,647.63
Deeper support, aligning with the upper boundary of the Ichimoku cloud.
Could be tested if a deeper correction follows.
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🧠 Interpretation of the Chart Setup
🟢 Bullish Case:
ETH has been in a parabolic rise with higher highs and higher lows.
The price is well above the Ichimoku Cloud, indicating strong bullish bias.
Momentum favors a potential test of \$4,104 resistance.
⚠️ Bearish Scenario (as depicted):
* The chart shows a potential retracement from near the resistance.
* If price fails to break \$4,104, expect:
* 1st pullback target: \$3,093.88
Deeper correction target: \$2,647.63 (aligned with Ichimoku cloud support)
This suggests a short-term correction before resuming upward trend.
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📌 Conclusion**
Short-term Outlook: Slightly overextended; a retracement is likely after such a strong rally.
Medium-term Outlook**: Bullish if the price holds above \$3,093.
Watch for**:
Bearish rejection candles near \$4,104.
Price breaking below \$3,093 for confirmation of short-term downtrend.
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