ETH Market Analysis and Trading Strategy
6 Dec 2024

$ETH is showcasing a clear uptrend on the 1D chart and is currently attempting to break through the critical resistance level at $3,800. If this level is successfully breached, it could pave the way for ETH to retest its all-time high (ATH) and potentially surpass the $5,000 mark.

Unlike $BTC , ETH often exhibits unique price behavior, with limited correlation to BTC's movements. In scenarios where BTC struggles, traders and investors may redirect funds toward ETH, seeking potentially higher returns.

However, failure to sustain momentum and escape the $3,800 resistance could lead to a pullback toward $3,500. Conversely, if ETH crosses $4,000, it is likely to gain significant bullish momentum, revisiting its previous ATH and positioning itself for a new ATH above $5,000.

For those trading ETH amidst the current volatility, it is essential to maintain discipline and avoid speculative decisions influenced by market noise or unrealistic expectations. Here’s a suggested trading approach:

Entry point: Confirm a position only if ETH consolidates above $4,000. Stop loss: Set at $3,800 to mitigate downside risks.Profit-taking strategy: Adjust the stop loss to breakeven once ETH price increases by 3–4% from the entry. Consider taking at least 50% profit at a 5% ROI to lock in gains while leaving room for further upside.

Patience, vigilance, and adherence to risk management are critical to navigating ETH’s volatile price action.