$ETH
Here's a comprehensive technical analysis of ETHUSDT (4H timeframe) based on your chart:
Overall Trend:
Strong Bearish Breakdown
ETH has just experienced a violent drop of -14.59%, with heavy red candles and massive volume spike confirming strong sell pressure.
Indicators Analysis:
1. Bollinger Bands (20,2):
Price closed below the lower band (DN: 1568.47) – indicating extreme volatility and oversold conditions.
The bands are sharply widening – breakout confirmed.
2. RSI (6): 7.19
Deeply oversold – typically signals an upcoming dead cat bounce or relief rally, but momentum is too weak for now.
3. MACD:
MACD: -27.33, Signal: -35.29, Histogram: -27.33
Strong bearish divergence – momentum accelerating downward.
4. Volume:
Volume surged on red candles – big players are exiting.
Likely capitulation candle seen near 1520.00.
5. Key Support/Resistance:
Immediate support hit: $1520.00
Next support zone: $1480 - $1500
Resistance to watch for bounce: $1568 - $1600
Current Status:
ETH printed a small bullish candle after a sharp dump. This could be a dead cat bounce – not reversal yet.
Trading Signal:
Trade Type: SHORT (high probability)
Entry (Short): $1550 - $1570
Stop Loss (SL): $1610
Take Profit (TP1): $1505
TP2: $1475
TP3: $1420
Trade Duration: 4H to 1 Day
Confidence: 85%
Alternative Trade - If Bullish Bounce Forms:
Trade Type: SCALP LONG (only if bounce confirms above $1568)
Entry: $1570 - $1585
TP: $1610 - $1635
SL: $1535
Trade Duration: Max 2-4 Hours
Confidence: 40% (only for quick bounce play)
Risk Management:
Use 1-2% risk per trade
Move SL to breakeven once TP1 is hit
Do not go long unless candle closes above 1570 with volume confirmation
My Favourable Recommendation:
Take the SHORT trade setup unless ETH reclaims $1570 on volume. Momentum, volume, MACD, RSI all favor further downside or range-bound recovery.