Technical Indicators & Market Sentiment:
🔹 Trendline Analysis:
ETH previously broke below a descending trendline but rebounded near the $2,200 zone.
It is now attempting to break above the R1 trendline, which will determine the next trend direction.
🔹 Potential Breakout Scenario:
A successful breakout above R1 will likely push ETH toward $3,500, followed by a retest of $4,000-$4,100.
The next major target in a bullish breakout would be $4,500-$5,000 based on previous highs and Fibonacci projections.
🔹 Potential Breakdown Scenario:
If ETH fails to break R1 and faces rejection, a drop toward $2,208 (S1) is likely.
A breakdown of $2,200 could trigger a deeper correction toward $1,800-$1,900, with an extreme bearish target at $1,521.
🔹 Liquidity & Volume:
The buying volume needs to increase for ETH to break the R1 resistance effectively.
A lack of volume may cause fake breakouts before the next major move.
🔹 Market Psychology:
Ethereum remains in a recovery phase following its last correction, with traders waiting for confirmation before committing to new positions.
The $3,500-$4,000 range is a psychological barrier; a clean break will likely trigger FOMO buying.
Conclusion & Trading Strategy:
Given the current market conditions, I am preparing for two key scenarios:
1️⃣ Bullish Breakout (Trend Reversal Confirmation):
A daily close above $2,800-$3,000 with strong volume confirms bullish continuation.
If ETH sustains above this level, I will enter a long position, targeting $3,500, $4,000, and ultimately $4,500-$5,000.
2️⃣ Bearish Rejection & Retest of Support:
If ETH fails to hold above $2,700 and faces rejection at R1, a retracement to $2,200 (S1) becomes likely.
A break below $2,200 may open a shorting opportunity with a target around $1,800-$1,900.
Risk Management:
Stop-loss for longs: Below $2,600 to avoid bull traps.
Stop-loss for shorts: Above $3,000 in case of a breakout.
Leverage: Low to moderate, considering high volatility.
The next few weeks are critical for Ethereum’s trend direction. If it successfully flips R1 into support, a strong rally may follow. Otherwise, a rejection could lead to another bearish wave, providing buying opportunities at lower levels.
Final Thought:
Ethereum is currently in decision mode, with a break above $2,800-$3,000 needed to confirm bullish strength. I will closely monitor price action and volume dynamics before entering any high-conviction trades.
🔹 Trendline Analysis:
ETH previously broke below a descending trendline but rebounded near the $2,200 zone.
It is now attempting to break above the R1 trendline, which will determine the next trend direction.
🔹 Potential Breakout Scenario:
A successful breakout above R1 will likely push ETH toward $3,500, followed by a retest of $4,000-$4,100.
The next major target in a bullish breakout would be $4,500-$5,000 based on previous highs and Fibonacci projections.
🔹 Potential Breakdown Scenario:
If ETH fails to break R1 and faces rejection, a drop toward $2,208 (S1) is likely.
A breakdown of $2,200 could trigger a deeper correction toward $1,800-$1,900, with an extreme bearish target at $1,521.
🔹 Liquidity & Volume:
The buying volume needs to increase for ETH to break the R1 resistance effectively.
A lack of volume may cause fake breakouts before the next major move.
🔹 Market Psychology:
Ethereum remains in a recovery phase following its last correction, with traders waiting for confirmation before committing to new positions.
The $3,500-$4,000 range is a psychological barrier; a clean break will likely trigger FOMO buying.
Conclusion & Trading Strategy:
Given the current market conditions, I am preparing for two key scenarios:
1️⃣ Bullish Breakout (Trend Reversal Confirmation):
A daily close above $2,800-$3,000 with strong volume confirms bullish continuation.
If ETH sustains above this level, I will enter a long position, targeting $3,500, $4,000, and ultimately $4,500-$5,000.
2️⃣ Bearish Rejection & Retest of Support:
If ETH fails to hold above $2,700 and faces rejection at R1, a retracement to $2,200 (S1) becomes likely.
A break below $2,200 may open a shorting opportunity with a target around $1,800-$1,900.
Risk Management:
Stop-loss for longs: Below $2,600 to avoid bull traps.
Stop-loss for shorts: Above $3,000 in case of a breakout.
Leverage: Low to moderate, considering high volatility.
The next few weeks are critical for Ethereum’s trend direction. If it successfully flips R1 into support, a strong rally may follow. Otherwise, a rejection could lead to another bearish wave, providing buying opportunities at lower levels.
Final Thought:
Ethereum is currently in decision mode, with a break above $2,800-$3,000 needed to confirm bullish strength. I will closely monitor price action and volume dynamics before entering any high-conviction trades.
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.