1️⃣ Overall Chart Analysis
• Current price: $2,508.30
• Daily decline: -4.10%
• The price tested the level of $2,523.98 but failed to break through.
• After a recent bounce from $2,312.00, ETH has risen nearly $200, indicating the current short-term upward trend.
• The purple line (MA 200): The long-term moving average is above the price – this is a bearish signal.
• Pink lines (MA 5 and MA 10): Short-term moving averages are trending upwards, signaling a possible continued momentum.
2️⃣ Stochastic Oscillator (K, D, J)
• K: 85.74, D: 81.98, J: 93.27 – the indicator is in the overbought zone (>80), which may signal a possible reversal or correction.
3️⃣ Relative Strength Index (RSI)
• RSI(6): 76.90, RSI(12): 71.11, RSI(24): 61.93
• RSI(6) and RSI(12) are in the overbought zone (>70), indicating that the price has already risen significantly and may potentially reverse or correct downwards.
4️⃣ MACD (Moving Average Convergence/Divergence)
• DIF: 23.97, DEA: 18.43, MACD: 5.54
• MACD is above zero and continues to rise – this signals bullish momentum.
• The yellow MACD line crossed the purple DEA line from below – this confirms a bullish trend.
5️⃣ Trading Volume (Vol)
• Volume 190.95K, which is relatively low compared to the previous peak when the price rose sharply.
• Decreasing volume as we approach the resistance level indicates a possible lack of strength from buyers.
6️⃣ Williams %R Index (Wm %R)
• Value: -5.83
• Indicates that the market is overbought, thus there may be a correction downwards.
Trading Strategy
📌 Current Situation:
• Short-term the market looks overbought, so there is a risk of a downward correction.
• In the long term, the trend is still bearish as the price is below the 200 MA.
• Resistance at the level of $2,523 - $2,530 – if the price cannot break it, a pullback may be expected.
📈 Strategy for entering long (buying)
1. Wait for a correction to support $2,442 - $2,450.
2. If the RSI falls below 60 and stabilizes, and the MACD remains above zero – open a position.
3. Stop-loss: below $2,400.
4. Take profit: $2,530 - $2,580.
📉 Strategy for entering short (selling)
1. If the price does not break $2,523 - $2,530, a short can be opened.
2. Confirmation will be a MACD reversal downwards or the RSI crossing below 70.
3. Stop-loss: above $2,550.
4. Take profit: $2,450 - $2,400.
Conclusion
🔹 Short-term: a possible pullback, so be cautious with purchases.
🔹 Long-term: the trend is still bearish, but the situation may change if we break through the 200 MA.
🔹 Recommendation: wait for confirmation of a correction or a breakout before entering a trade.
❗️Not financial advice ❗️
📌 Do you want me to do a similar analysis for other coins (BTC, LTC)?
