Let’s analyze the $ETH 1 day chart
### Chart Analysis:
- **Current Price**: $2,663.89
- **Recent Trend**: The price has seen a sharp upward spike after a period of consolidation around $1,800–$1,900, reaching a high of $2,804.39 before pulling back slightly.
- **Support and Resistance**:
- Resistance: Around $2,804.39 (recent high).
- Support: Around $2,309.36 (a minor pullback level) and stronger support near $1,814.33 (previous consolidation zone).
- **Volatility**: High, given the recent spike and pullback.
- **Risk Profile**: Medium risk suggests we aim for a balanced risk-reward ratio (e.g., 1:2) and avoid overly tight stop losses.
### Short Trade Setup:
For a short trade, we expect the price to drop after the recent rally, potentially due to profit-taking or a correction.
1. **Entry Point**:
- The price is currently at $2,663.89. Given the recent high at $2,804.39 and a slight pullback, we can enter a short position near the current price, assuming a correction is likely.
- **Entry**: $2,663.89 (current price, assuming a rejection or continued pullback).
2. **Take Profit (TP)**:
- The nearest support level is around $2,309.36, which could act as a target for a short-term correction.
- **Take Profit**: $2,309.36
- This gives a potential profit of $2,663.89 - $2,309.36 = $354.53 per ETH.
3. **Stop Loss (SL)**:
- For a medium risk trade, we place the stop loss above the recent high to account for potential volatility but not too far to keep the risk manageable.
- The recent high is $2,804.39. Adding a small buffer for volatility, we set the stop loss at $2,830.
- **Stop Loss**: $2,830
- This gives a risk of $2,830 - $2,663.89 = $166.11 per ETH.
### Risk-Reward Ratio:
- Risk: $166.11
- Reward: $354.53
- Ratio: $354.53 / $166.11 ≈ 2.13:1 (favorable for a medium-risk trade).
### Summary:
- **Entry Point**: $2,663.89 (short)
- **Take Profit**: $2,309.36
- **Stop Loss**: $2,830
- **Risk-Reward Ratio**: ~2.13:1