Analysis of the ETH/USDT chart on the 4H timeframe
A. Price Trend & Bollinger Bands
• ETH price is below the middle line of the Bollinger Bands, indicating that the downtrend is still dominant.
• Bollinger Bands are narrowing, signaling that volatility may increase sharply soon.
B. Ichimoku Cloud
• The price is below the Ichimoku cloud, indicating that the downtrend is still maintained.
• The cloud ahead is red, signaling strong resistance in the near term.
• Chikou Span (the green line) is below the price, reinforcing the downtrend.
C. Stochastic RSI
• The Stochastic RSI indicator is at a very low level (~9.36 and 11.27), signaling oversold conditions, which may lead to a technical rebound.
• If the green line crosses above the orange line and exceeds 20, a small recovery may be confirmed.
D. MACD
• The MACD histogram is still in the negative zone, indicating that the downtrend is still strong.
• If the MACD crosses above the signal line, a slight rebound may occur.
👉Prediction and Trading Strategy
Scenario 1: Continued decline (High probability)
• If ETH breaks below the support of 2,600 USDT, the price may drop deeper to the range of 2,500 - 2,550 USDT.
• Strategy: If the price continues to weaken, consider shorting ETH when the price cannot recover above 2,700 USDT.
Scenario 2: Bullish reversal (Low probability)
• If ETH breaks above 2,750 USDT and the MACD crosses into positive territory, a bullish reversal to 2,900 - 3,000 USDT may occur.
• In this case, consider going long on ETH when the price confirms breaking resistance.
4. Conclusion
• The current trend is still bearish, but a technical rebound may occur.
• Traders should wait for confirmation from MACD and Stochastic RSI before deciding to trade.
• Important support: 2,600 USDT
• Strong resistance: 2,700 - 2,750 USDT