Hey Binance Square Crew! đ
Hereâs a fresh, friendly, and detailed update on Ethereumâs recent move, inspired by the H4 resistance at the 78.6% Fibonacci level. Weâll dig into the setup, implications, and what it might mean for your trading strategy â all with some emoji flair and crypto spirit! â¨
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đ Whatâs Happening with ETHUSD?
On the 4-hour timeframe, Ethereum is currently navigating a key resistance zoneâright at the 78.6% Fibonacci retracement level. This sweet spotâs got many traders watching closely:
Fib retracement basics: The 78.6% level often acts as a strong resistance zone in corrective moves. A price bounce here can hint at a deeper retracement or reversal.
Why this matters: A breakout above this level could signal renewed bullish momentum, while a rejection might lead to a pullback toward earlier support â like the 61.8% or 50% Fib lines.
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đĄ Binance Square Perspective: Key Considerations
Following Binance Squareâs best practices, hereâs how to analyze and approach this setup smartly:
đ Bullish Scenario (Breakout Above 78.6% Fib)
Trigger Potential Target Why It Matters
ETH close above ~78.6% Fib 100% Fib or previous swing highs Could mark a resurgence in bullish trend â great for breakout traders
Rising volume & momentum Strong candlestick formations Strengthens the breakout thesis
How to trade: Consider long positions on a confirmed breakout (4h close above Fib, plus volume support). Set stop loss just below the breakout candle or recent swing low.
Take-profit area: First target around the 100% Fib (~previous swing high), next target could be the 161.8% extension if momentum carries.
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đĄď¸ Bearish Scenario (Rejection at Resistance)
Signal Price Reaction Strategy
Bearish candle engulfing the 78.6% level Quick pullback Consider short or âfade-the-failureâ trades
Stagnant or falling volume Weak breakout Fear of false breakout or trap
How to trade: On clear rejection patterns (e.g., bearish engulfing or doji), short/put options (if supported) could work well. Place stop loss just above the rejection high.
Key support zones: Look for pullbacks toward 61.8% Fib ($Y) â great areas to add long for dip buyers.
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đ§ Strategy Checklist for Binance Square Traders
1. Wait for clarity: Let the 4h candle close before confirming direction.
2. Volume confirmation: Breakout without volume is weak â pass.
3. Risk management first: Always define stop loss & position size for both direction trades.
4. Mind the news: Ethereum catalysts (like upgrades, partnerships, ETF chatter) could move markets â keep an eye out!
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:) Friendly Heads-Up:
Fibonacci zones are guides, not iron-clad rules â pair with other indicators (e.g. RSI, MACD) to boost confidence.
Scalping near Fib needs nimble fingers â be ready to shift stops or close partials quickly.
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đĽ Wrap-Up
Ethereum is at a crossroads on the H4 timeframe â the 78.6% Fib is a battleground. Whether youâre aiming for a breakout or a fade, setup matters: wait for confirmation, check volume, define risk, and always stay alert.
Get creative, stay sharp, and trade smart â thatâs the Binance Square way! đ
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If you're using Binance Square options, think about puts to hedge a breakdown or calls for a breakout â just always stay within your risk plan.