Ethereum is showing strength above key levels, but a short-term pullback could open the door to a fresh leg up!
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đ Whatâs Happening?
Bullish breakout above $3,408â$3,500: Multiple short-term signals confirm momentum, with moving averages aligned and volume picking up around $3,600 .
Overbought levels mean caution: RSI and Stoch indicators are sky-highâprompting a likely cooldown before resuming the climb .
Support zones to watch:
**$3,408â3,500**: Retest could offer a long entry
Lower support: $3,200â3,300 acts as safety net if deeper pullback occurs .
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đŻ Trade Setup Framework
1. Buy the pullback
Aim to enter around $3,500â$3,550 (a softened bounce level)
Target: $3,750 â $4,000 zone, with volume-confirmed breakout
Stop-Loss: Below $3,400 to limit risk
2. Wait for breakout
If $3,750 breaks clean, look for retest â Target $4,000+
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đĄď¸ Why This Setup Works
Momentum & volume aligned: Buyers are absorbing pressure, and MAs confirm the trend .
Healthy pullbacks fuel rallies: Cooling off from overbought zones typically tightens structure and enables stronger continuation.
Macro picture looks good: Long-term structural strength and institutional interestâlike ETF inflowsâare reinforcing bullish bias .
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â Quick Recap
Factor Level / Range
Entry Zone $3,500â$3,550 (buy the dip)
Stop-Loss < $3,400
Targets TP1: $3,750, TP2: $4,000+
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đ Final Thoughts
Ethereumâs short-term indicators say âcooldown time,â but underlying structure and volume favor continuation. A pullback towards $3,500ish could be the best launch point for the next bullish wave. Stay sharp, keep risk in check, and ride the momentum!
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Always use proper risk management. This isnât financial adviceâjust analysis to inform your trades đ
â Your friendly Binance Square analyst