Welcome back, guys! 👋I’m Skeptic, and today we’re diving into one of the most popular coins out there—Ethereum (ETH). Let’s find some solid triggers and setups while picking up a few educational tips along the way. 💡
🔮4-Hour Time Frame Analysis
As you can see on the chart, after the sell-off candle, ETH entered a 4-hour range box. We witnessed volume decrease during the range formation and a sharp volume spike during the box breakout, confirming momentum increase. Following the breakdown below the box support at $2,521.23, we entered a downward channel, with the price respecting the channel's upper, lower, and mid lines.
📈Long Setup
To enter a long position, I’d wait for a break above the resistance at $2,144, which would also indicate a breakout from the downward channel. Keep in mind that this setup is against the current trend, so it’s crucial to use a tight stop loss and secure profits early as reversals are likely.
📉Short Setup
For a short position, I’d consider entering after a breakdown below the support at $1,751.00. Additionally, if the RSI re-enters the overbought zone during the breakout, it will add more confirmation. This setup would align better with the prevailing trend, giving us a higher confidence level. To set your profit targets, you can clone the existing channel and place it above or below the current one, as price is likely to react to these levels.
Let me know your thoughts on ETH/USD! 💬 Got any questions? Drop them in the comments, and I’ll be happy to discuss. Let’s grow together, not alone! 🔥
🔮4-Hour Time Frame Analysis
As you can see on the chart, after the sell-off candle, ETH entered a 4-hour range box. We witnessed volume decrease during the range formation and a sharp volume spike during the box breakout, confirming momentum increase. Following the breakdown below the box support at $2,521.23, we entered a downward channel, with the price respecting the channel's upper, lower, and mid lines.
📈Long Setup
To enter a long position, I’d wait for a break above the resistance at $2,144, which would also indicate a breakout from the downward channel. Keep in mind that this setup is against the current trend, so it’s crucial to use a tight stop loss and secure profits early as reversals are likely.
📉Short Setup
For a short position, I’d consider entering after a breakdown below the support at $1,751.00. Additionally, if the RSI re-enters the overbought zone during the breakout, it will add more confirmation. This setup would align better with the prevailing trend, giving us a higher confidence level. To set your profit targets, you can clone the existing channel and place it above or below the current one, as price is likely to react to these levels.
Let me know your thoughts on ETH/USD! 💬 Got any questions? Drop them in the comments, and I’ll be happy to discuss. Let’s grow together, not alone! 🔥
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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.
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.