Market Structure Overview:
Markets typically move in two major phases:
๐น Trend Phase (directional movement)
๐น Consolidation Phase (sideways movement or accumulation/distribution)
These phases repeat as: Trend โ Consolidation โ Trend โ Consolidation
Ethereum Price Action Breakdown (Daily Timeframe):
Mid-December to End-April: Clear downtrend phase.
May to Early July: Entered a consolidation zone, forming a tight range.
Current Status (July):
๐น Ethereum has broken out of the consolidation range.
๐น Currently trading around $3000, confirming strength.
๐น This breakout may potentially signal the start of Altcoin Season.
Trade Setup โ Long Position Idea:
Entry (Buy Zone): Around $2850 (retest of breakout resistance).
Target:
๐น Primary Target: $4050
๐น This aligns with a major resistance and Fibonacci extension zone.
Stop Loss: $2600 (below key structure support).
Technical Confluences:
* Breakout above multi-week range.
* Retest of resistance turned support at \$2850.
* Psychological round level near \$3000 acting as a magnet.
* Volume confirmation on breakout (optional to mention if on chart).
Risk Note:
โ ๏ธ Caution: The Market may turn volatile due to unexpected geopolitical or macroeconomic news. Always follow risk management and avoid overleveraging.
Conclusion:
Ethereumโs breakout from a multi-month consolidation phase indicates a potential shift in momentum. If retest levels hold, this could be the beginning of a strong upside rally, possibly leading to a broader Altcoin Season. Traders can position themselves accordingly with a well-defined risk-reward setup.
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