This chart represents the Ethereum (ETH/USD) price action on the 4-hour timeframe. Here’s a breakdown of the analysis:
Technical Analysis:
1. Descending Channel Breakout:
The price has been in a falling wedge or descending channel, visible with the downward-sloping trendlines.
The recent breakout above the upper boundary of the wedge suggests a possible trend reversal.
2. Bullish Structure & Potential Upside:
The yellow zig-zag pattern indicates a series of higher lows and higher highs, supporting bullish momentum.
A target zone is marked in blue, showing a potential price surge toward the $2,200-$2,300 range.
3. Support Zone (Red Box):
The red box represents a key support zone around $1,750-$1,800, which could act as a stop-loss region.
If the price falls back into this area, it could invalidate the bullish setup.
4. Volume & Confirmation:
The breakout should ideally be supported by increasing volume for confirmation.
If volume remains low, there’s a chance of a retest of the support zone before continuing upward.
Trade Setup Suggestion:
Entry: Around the current price (~$1,888).
Target: $2,200 - $2,300.
Stop-Loss: Below $1,800 (red box zone).
Risk-to-Reward Ratio: Favorable if the setup holds.
Final Thoughts:
Bullish breakout scenario: If ETH maintains above the breakout zone, a rally toward $2,200+ is likely.
Bearish invalidation: A drop below $1,800 could lead to further downside toward $1,600.
Would you like me to analyze any indicators or look for additional confluences?
Technical Analysis:
1. Descending Channel Breakout:
The price has been in a falling wedge or descending channel, visible with the downward-sloping trendlines.
The recent breakout above the upper boundary of the wedge suggests a possible trend reversal.
2. Bullish Structure & Potential Upside:
The yellow zig-zag pattern indicates a series of higher lows and higher highs, supporting bullish momentum.
A target zone is marked in blue, showing a potential price surge toward the $2,200-$2,300 range.
3. Support Zone (Red Box):
The red box represents a key support zone around $1,750-$1,800, which could act as a stop-loss region.
If the price falls back into this area, it could invalidate the bullish setup.
4. Volume & Confirmation:
The breakout should ideally be supported by increasing volume for confirmation.
If volume remains low, there’s a chance of a retest of the support zone before continuing upward.
Trade Setup Suggestion:
Entry: Around the current price (~$1,888).
Target: $2,200 - $2,300.
Stop-Loss: Below $1,800 (red box zone).
Risk-to-Reward Ratio: Favorable if the setup holds.
Final Thoughts:
Bullish breakout scenario: If ETH maintains above the breakout zone, a rally toward $2,200+ is likely.
Bearish invalidation: A drop below $1,800 could lead to further downside toward $1,600.
Would you like me to analyze any indicators or look for additional confluences?
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.