$ETH (ETH/USD) on a 4-hour timeframe with a broken ascending channel, followed by a downtrend. Here’s my analysis:
Key Observations:
Ascending Channel Breakdown:
The price was moving within an upward channel but has broken below the lower trendline.
This breakdown suggests a bearish shift in market sentiment.
Volume Analysis:
Increased volume on the breakdown indicates strong selling pressure.
The subsequent candles show relatively lower volume, which may indicate exhaustion or consolidation before another move.
Current Support & Resistance Levels:
Potential support: Around $1,750 - $1,770 (previous structure lows).
Potential resistance: Around $1,950 - $1,980 (broken support from the channel, now resistance).
Potential Trade Setups:
1. Short Setup (Continuation of Downtrend)
Entry: If price retests and rejects the broken channel support (~$1,950).
Stop Loss: Above the previous high (~$2,000).
Target: Next key support zone (~$1,750 - $1,770).
2. Long Setup (Reversal or Bounce)
Entry: If price shows a bullish reversal pattern at $1,750 - $1,770 (e.g., bullish engulfing, double bottom).
Stop Loss: Below $1,720 to protect against further downside.
Target: $1,900 - $1,950 resistance.
