Based on the 1-hour chart you provided for ETH/USDT, here’s a complete explanation of the entry and exit points along with the technical reasoning:
Chart Overview:
Timeframe: 1H (1-Hour)
Exchange: Binance
Current Price: $1670.55
Trendline Breakout: A descending trendline has been broken to the upside.
Indicators: Volume, RSI (Relative Strength Index), and SMA (possibly 9/20 EMA)
ENTRY POINT
Entry Price: Around $1660–$1670
Reason:
The price has broken above the descending trendline, signaling a potential bullish breakout.
There is a consolidation area just below $1670, meaning price may have built support here.
The RSI is above 65, indicating bullish momentum but not yet in overbought territory.
TAKE-PROFIT (TP) TARGETS
First TP: $1700
A psychological level and minor resistance on the chart.
Conservative and safer profit zone.
Second TP: $1730
Aligned with the green box on the chart.
May represent the upper range of recent consolidation or a measured move projection.
STOP-LOSS
Stop Price: $1647
Reason:
Just below a key horizontal support (red line on the chart).
Protects capital in case the breakout fails and the price returns into the previous range.
RISK-TO-REWARD
Risk: ~$23 (Entry $1670 - Stop $1647)
Reward: Up to $60 (Entry $1670 - TP $1730)
Ratio: Approximately 1:2.6, which is a solid risk-to-reward setup.
Other Technical Notes
Volume: There's a visible spike in volume during the breakout candle, supporting the breakout.
RSI: Near 65, indicating strength but caution as it's getting close to overbought territory.
Trendline: The break of the long-term downtrend line adds strength to the bullish setup.
Summary of Trade Setup
Buy Entry: $1660–$1670
Stop Loss: $1647
Take Profits: $1700 (TP1), $1730 (TP2)
Trend: Bullish breakout from downtrend resistance
Confirmation: Breakout candle with volume + RSI > 60