Technical Observation:
1. M Pattern Formed:
The chart clearly shows a double top (M pattern), which is typically a bearish reversal pattern. After forming the M, price dropped sharply — confirming the pattern.
2. Monthly Bullish Pin Bar Forming:
Now, ETH is forming a strong bullish pin bar at a key support zone (around $2,300). This pin bar has a long lower wick, indicating strong rejection from the downside.
3. Stochastic RSI:
It's in the oversold zone, indicating the potential for a bullish reversal.
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Trading Signal (Swing Position):
Bias: Bullish Reversal (short to medium term)
Entry: Around $2,400 – $2,450 (current price zone)
Stop Loss: Below the wick low of the pin bar (around $2,150)
Take Profit (TP1): $2,650 (near 25 MA)
Take Profit (TP2): $2,950 – $3,000 (mid-range resistance)
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Risk Management Tip:
Risk only 1–2% of your capital on this trade. This is a counter-trend trade after a major drop, but supported by bullish price action and indicators.