Ethereum (ETH) is showing signs of potential exhaustion on the 1-hour timeframe, hinting at a possible relief bounce. Despite forming smaller lower lows and lower highs, which indicate a short-term downtrend, the reduced volatility and diminishing selling pressure suggest that bears may be losing momentum.
However, traders should remain cautious, as relief bounces in a downtrend can be short-lived. Confirmation from increased volume and a shift in market structure would strengthen the case for a more sustained recovery. At this moment ETH is still in a clear downtrend.
With a possible relief bounce it is an option to look for shorts at resistance areas to trade ETH back down. If ETH breaks it's current low it could get ugly with 1500 as a possible level.
On the daily timeframe is ETH at his supportlevel from the initial, drop a couple weeks ago. So with ETH on the daily support and on the 1-hour indicating for a possible short relief bounce we have to trade accordingly with risk management if you are opening shorts at this stage.
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However, traders should remain cautious, as relief bounces in a downtrend can be short-lived. Confirmation from increased volume and a shift in market structure would strengthen the case for a more sustained recovery. At this moment ETH is still in a clear downtrend.
With a possible relief bounce it is an option to look for shorts at resistance areas to trade ETH back down. If ETH breaks it's current low it could get ugly with 1500 as a possible level.
On the daily timeframe is ETH at his supportlevel from the initial, drop a couple weeks ago. So with ETH on the daily support and on the 1-hour indicating for a possible short relief bounce we have to trade accordingly with risk management if you are opening shorts at this stage.
Thanks for your support.
- Make sure to follow me so you don't miss out on the next analysis!
- Drop a like and leave a comment!
Note
Protect your positions after this candle. So, now the trade will be risk free! In every pump we have to protect our entries and stoplosses at all cost. It could switch in a blink of an eye. Note
We are in the middle of the bounce. The first take profit at the Golden Pocket has been hit. Take some profits of the table and move your stoploss to Breakeven. Trade closed: target reached
The relief bounce on the 1-hour for ETH has played out perfectly. The first target on the Golden Pocket and the second target on the resisntace zone has both been hit. Therefore, the trade has closed and profits been made. Did anyone else took this trade idea with me? Let me know in the comment section
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Free discord trading community
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
discord.gg/ctYsFQR4bx
Free signals
t.me/codeandcandle
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.