$ETH Trading Strategy and Analysis
Technical Analysis:
Trend: Bearish, with lower highs and lower lows. The price is below all major moving averages, confirming the downtrend.
Support/Resistance: Key support at $1865 (tested multiple times) and resistance at $2367 (200-day MA). The next support below $1865 is around $1500.
Candlestick Patterns: No bullish reversal patterns; recent candles show strong selling pressure.
Volume: High volume during the downtrend, but low volume during recent consolidation near $1865, indicating weak buying interest.
Oscillators: RSI at 40 (neutral-to-oversold, no reversal signal); MACD is bearish with no bullish crossover.
Chart Pattern: A descending triangle (bearish continuation) is forming, with a potential breakdown below $1865 targeting $1500 or lower.
(Short Position):
Position: Short ETHUSDT.
Entry: $1850 (after a confirmed breakdown below $1865 support).
Stop-Loss: $2120 (above recent swing high and 50-day MA).
Take-Profit: $1600 (conservative) or $1500 (pattern target).
Likelihood of ETH Dropping Below $1500: High probability due to the bearish trend, descending triangle target, lack of strong support until $1200-$1300, and weak buying volume. A breakdown below $1865 could easily push ETH below $1500.
Alternative (Long Position): Only if a bullish reversal occurs (e.g., price holds $1865, bullish candlestick pattern, RSI above 50). Entry above $1900, stop-loss at $1840, and take-profit at $2100-$2367.
Conclusion: The technical setup strongly favors a short position, with ETH likely to drop below $1500 if $1865 support breaks. Monitor for reversal signals and broader market conditions (e.g., Bitcoin’s price action) due to crypto market volatility.
Disclaimer: This is for informational purposes only, not financial advice. Conduct your own research and trade responsibly. 🚀📊