ETH Poised for Post-ETF Approval Pullback: Short to 3.2k Zone
Ethereum surged over 30% in anticipation of its much-awaited ETF approval, but the excitement may be short-lived. As traders who missed the initial rally eye the 2.9k to 3.2k support zone, a pullback seems likely. With ETH currently trading around 3.8k, a short trade to this support area presents an attractive opportunity.
Technical Analysis:
Proposed Short Trade:
Entry Price: 3.8k zone USDT
Take Profit: 3k zone USDT
Stop Loss: 4.110 USDT
Rationale:
Risk-to-Reward Ratio:
The potential risk-to-reward ratio for this trade is approximately 3:1, implying a potential 3% profit for every 1% risk.
Technical Analysis:
- Visible Range Volume Profile (VRVP): The VRVP indicates a significant volume zone at 3k, suggesting strong support at this level.
- Average Directional Index (ADX): The ADX, a momentum indicator, is losing strength, signaling a weakening trend.
Proposed Short Trade:
Entry Price: 3.8k zone USDT
Take Profit: 3k zone USDT
Stop Loss: 4.110 USDT
Rationale:
- The post-ETF approval euphoria is likely to fade, leading to a price correction.
- The 2.9k to 3.2k zone represents a strong support area, as evidenced by the VRVP.
- The weakening ADX suggests a loss of momentum in the uptrend.
Risk-to-Reward Ratio:
The potential risk-to-reward ratio for this trade is approximately 3:1, implying a potential 3% profit for every 1% risk.
Note
Well, this took longer than expected, but we've now reached the take profit zone in ETH.
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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.
Related publications
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.