#OnChainInsights
Considering the ETH/USDT chart on the 4-hour timeframe:
Analysis of key levels:
1. Resistance level 2849.70:
The price is currently very close to this level after a strong upward wave.
If it breaks 2849.70 with a strong candle closing above it, it may continue to rise to higher levels such as:
2950.00 or even 3000.00 as subsequent upward targets.
However, if it fails to break and shows weakness, it may start to correct downwards.
2. Support level 2605.44:
This is the closest strong support, and the price has bounced from it more than once.
If a correction occurs from the current resistance, it may drop to test 2605.44 as the first support.
And if it breaks 2605.44, the next target may be at 2520.02.
Possible scenarios:
In case of an upward breakout:
Enter a buy after confirming the breakout with a first target at 2950.00 and a second target at 3000.00.
Stop loss below 2849.70.
In case of a downward bounce:
If the price shows weakness at the resistance, you may consider a sell order with a target of 2605.44.
Stop loss above 2849.70.
Additional tips:
Monitor price action at 2849.70 as it is a critical level.
Follow trading volume to ensure the strength of the breakout or bounce.
Using additional indicators like RSI or MACD may help you confirm the signals.
If you need any clarifications or further assistance, let me know.
