Technical Analysis of $ETH (4H Chart) ๐
Market Overview: The 4-hour chart for $ETH reveals a strong downtrend following a significant sell-off. Prices tumbled from around $3,400 to a low near $2,095 ๐, with heavy volume at the bottom suggesting that liquidity was absorbed, creating a temporary support zone. Currently, ETH/USD is consolidating near $2,573.78 ๐, which could either signal a brief pullback or the continuation of the bearish momentum.
Key Technical Levels:
- Resistance Zones:
- $2,875 - $2,909: This range marks a recent breakdown area that has now turned into resistance ๐ง.
- $3,200 - $3,400: A major supply zone where sellers had a significant impact before the downturn ๐.
- Support Levels:
- $2,095: The recent low that acted as a liquidity trap and could serve as a strong support area ๐ก๏ธ.
- $2,500: A psychological support level that might offer additional stability during a pullback ๐ช.
Intraday Trading Strategy (Short-Term Setup):
- Trade Type: Short (Sell) โฌ๏ธ
- Entry Point: Consider entering between $2,650 - $2,700 after a pullback to minor resistance, anticipating further downward movement ๐ป.
- Stop-Loss: Set above $2,875 to protect against unexpected breakouts โ ๏ธ.
- Take-Profit Targets:
- Target 1: $2,500 โ near the psychological support zone ๐ฏ.
- Target 2: $2,300 โ if bearish momentum intensifies ๐.
- Target 3: $2,095 โ at the previous low where liquidity was absorbed ๐ฐ.
Alternative Long Setup (If Reversal Occurs):
- Entry Point: Above $2,900, provided the price breaks resistance with strong volume confirmation ๐.
- Stop-Loss: Place below $2,750 to minimize risk in case of a false reversal โ.
- Take-Profit Targets:
- Target 1: $3,100
- Target 2: $3,300
Additional Insights: Recent RSI readings on the 4-hour timeframe suggest that ETH may be oversold, hinting that the pullback could be nearing exhaustion ๐. However, the MACD continues to display bearish divergence, reinforcing caution โ ๏ธ. Monitoring volume trends is essentialโa surge in buying volume might indicate an impending reversal, so staying alert is key ๐.
Final Thoughts: The overall market sentiment for ETH/USD remains bearish, making short positions more attractive at this time ๐ด. Traders should closely watch for a pullback to critical resistance levels before initiating sell orders. Effective risk management through timely stop-loss placements is crucial in this volatile environment ๐.
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