Let’s analyze the Ethereum ($ETH ) 1-day candlestick chart for a short trade (betting on a price decrease) with a medium risk profile. The chart shows ETH at $2,576.77, down 2.98%, with a 24-hour range of $2,309.36 to $2,804.39 over the past month (April 5 to May 23, 2025).
### Chart Analysis:
- **Trend**: The price has recently peaked at $2,804.39 and is showing a pullback, indicating potential bearish momentum. The prior uptrend from $1,386.79 suggests a correction might be underway.
- **Support and Resistance**:
- Resistance: $2,804.39 (recent high).
- Support: $2,309.36 (recent low), with a stronger support around $1,814.33 (mid-range).
- **Risk Profile**: Medium risk implies a moderate stop loss and a realistic take-profit target, balancing risk and reward.
### Trade Setup (Short Position):
1. **Entry Point**:
- Enter the short trade at the current price of $2,576.77. The recent drop and failure to break the $2,804.39 resistance suggest bearish momentum may continue.
2. **Take Profit (TP)**:
- Target the recent support at $2,309.36. This gives a profit of $2,576.77 - $2,309.36 = $267.41 per ETH.
3. **Stop Loss (SL)**:
- For medium risk, set the stop loss above the recent high at $2,804.39. To account for volatility, place it slightly higher at $2,850.00. This gives a risk of $2,850.00 - $2,576.77 = $273.23 per ETH.
### Risk-Reward Ratio:
- Risk: $273.23
- Reward: $267.41
- Risk-Reward Ratio: $267.41 / $273.23 ≈ 0.98:1 (close to 1:1, acceptable for a medium-risk trade).
### Summary:
- **Entry Point**: $2,576.77 (short)
- **Take Profit**: $2,309.36
- **Stop Loss**: $2,850.00
- **Risk-Reward**: ~0.98:1
