Date: 18th May, 2025
Prepared by: Musarrat
Ethereum is currently undergoing a retracement phase after a strong bullish rally. A Fibonacci retracement tool has been applied from the recent low around $1,577 to the swing high of $2,742.75 to identify key levels of potential reversal.
Key Technical Levels:
Fibonacci Retracement Zones:
0.236: $2,572.75 (minor resistance)
0.382: $2,467.66
0.5: $2,382.99 (current price nearing this zone)
0.618: $2,298.71 (strong retracement zone)
0.786: $2,176.73
Buy Limit Order:
Entry Price: $2,415
Positioned between the 0.5 and 0.618 retracement levels—an optimal buy zone based on historical retracement behavior.
Stop Loss: $2,174
Placed just below the 0.786 retracement level to allow room for price fluctuation while protecting downside risk.
Take Profit Targets:
TP1: $2,732 – Near the previous swing high and a key resistance level.
TP2: $3,210 – A projected extension level, marking a strong bullish continuation if the uptrend resumes.
Indicator Analysis:
RSI (14): Currently at 61.05, indicating bullish momentum still holds, but approaching neutral territory. A bounce from current levels would confirm strength.
Conclusion:
The chart suggests a healthy retracement within an uptrend. A buy limit at $2,415 offers an opportunity to enter the market at value, targeting a rebound toward previous highs and beyond. The setup is supported by:
Retracement to golden ratio zones (0.5–0.618)
Strong RSI trend above 60
Clear stop-loss and reward levels offering favorable risk-to-reward ratio
Strategy:
Wait for price to trigger the Buy Limit at $2,415. If filled, monitor for price action confirmation and manage trade towards TP1 and TP2.
Prepared by: Musarrat
Ethereum is currently undergoing a retracement phase after a strong bullish rally. A Fibonacci retracement tool has been applied from the recent low around $1,577 to the swing high of $2,742.75 to identify key levels of potential reversal.
Key Technical Levels:
Fibonacci Retracement Zones:
0.236: $2,572.75 (minor resistance)
0.382: $2,467.66
0.5: $2,382.99 (current price nearing this zone)
0.618: $2,298.71 (strong retracement zone)
0.786: $2,176.73
Buy Limit Order:
Entry Price: $2,415
Positioned between the 0.5 and 0.618 retracement levels—an optimal buy zone based on historical retracement behavior.
Stop Loss: $2,174
Placed just below the 0.786 retracement level to allow room for price fluctuation while protecting downside risk.
Take Profit Targets:
TP1: $2,732 – Near the previous swing high and a key resistance level.
TP2: $3,210 – A projected extension level, marking a strong bullish continuation if the uptrend resumes.
Indicator Analysis:
RSI (14): Currently at 61.05, indicating bullish momentum still holds, but approaching neutral territory. A bounce from current levels would confirm strength.
Conclusion:
The chart suggests a healthy retracement within an uptrend. A buy limit at $2,415 offers an opportunity to enter the market at value, targeting a rebound toward previous highs and beyond. The setup is supported by:
Retracement to golden ratio zones (0.5–0.618)
Strong RSI trend above 60
Clear stop-loss and reward levels offering favorable risk-to-reward ratio
Strategy:
Wait for price to trigger the Buy Limit at $2,415. If filled, monitor for price action confirmation and manage trade towards TP1 and TP2.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.