Last night, Ethereum broke through the key resistance level of 1660, reaching a high of 1838 today. I mentioned last night that if it effectively breaks through, it would reach 1800. Therefore, I advised everyone to short at 1650 with a stop loss set at only 10 dollars, at 1660. In such a large market movement, even if you enter in the wrong direction, a stop loss can effectively reduce losses. I also mentioned yesterday that after breaking out of the consolidation range, the trading strategy should shift to buying on pullbacks. Different patterns and major trends have different operational strategies.

The daily and four-hour charts for Ethereum are both bullish, with a slight pullback in the small timeframe of fifteen minutes continuing to break upwards. The shorts from yesterday may not be able to exit so quickly. The small timeframe resistance level is around 1820, with support levels at 1780 and 1680.

Trading Strategy

For the larger timeframe, the main strategy is to buy on pullbacks. Buy at the support level of 1780 with a stop loss at 1750. Buy near 1700 with a stop loss at 1680.

If it breaks 1840, you can enter long or add to your long position.

Currently, if you have a light short position in the small timeframe, set the stop loss at the previous high of 1840.