Ethereum (ETH) Market Analysis
🔍Ethereum (ETH) is the coin of the day, a project that stands out from other altcoins due to its significant market dominance and substantial capital investment in both its network and coin. Unlike many other altcoins, Ethereum is less dependent on Bitcoin, making it an interesting asset to analyze independently.
🔄Previous Analysis Recap
In the previous analysis, it was suggested to enter a long position upon breaking 3798 with a target of 4063. After entering the position and reaching a risk-to-reward ratio of 2, I took partial profits and moved my stop loss to the entry point. The price did not move higher and eventually hit the stop loss at the entry point, resulting in a small profit due to the partial profit-taking.
⌛️4-Hour Timeframe
Current Situation: After forming a low at 3652, the volume has significantly decreased. Given the weekend lull, market momentum has completely dissipated. The 99-period SMA is approaching, potentially acting as the last hope for bullish momentum to re-enter the market.
🔑Key Levels:
Resistance: 3960 (first resistance), 4063 (key resistance)
Support: 3652 (current low)
⚡️Indicators:
RSI: Watch for a break above 54.46 for bullish momentum confirmation.
99-period SMA: Approaching price, may provide support or resistance.
📈Bullish Scenario
Entry: Break above 3960.
Target: Initial target at 4063.
If 4063 is broken and price stabilizes above this level, a significant upward move could be expected, especially benefiting Ethereum ecosystem coins.
Confirmation: RSI breaking above 54.46.
Long Position
Primary Trigger: Enter on a break above 3960.
Secondary Trigger: Enter on a break and stabilization above 4063 for a stronger bullish confirmation.
RSI Confirmation: Watch for a break above 54.46 to confirm bullish momentum.
Note: Monitor the price action around 4063 carefully, as it is a crucial resistance level.
📉Bearish Scenario
Entry: First trigger at 3719 (risky), main entry on a break below 3652.
Target: Following a break below 3652, look for confirmation of bearish momentum with a break below 41.03 on the RSI.
Short Position
Primary Trigger: Break below 3652.
Secondary Trigger: For a riskier entry, consider 3719, but the main focus should be on 3652.
RSI Confirmation: A break below 41.03 would confirm bearish momentum.
📝Ethereum is currently in a consolidation phase with key support at 3652 and resistances at 3960 and 4063. The low volume suggests that a significant move could be imminent. Traders should watch for breaks of these critical levels to enter positions, with volume and RSI serving as additional confirmation indicators. Always keep an eye on market conditions and adjust positions accordingly.
🧠💼It's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2.
🫶If you enjoyed this analysis and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
🔄Previous Analysis Recap
In the previous analysis, it was suggested to enter a long position upon breaking 3798 with a target of 4063. After entering the position and reaching a risk-to-reward ratio of 2, I took partial profits and moved my stop loss to the entry point. The price did not move higher and eventually hit the stop loss at the entry point, resulting in a small profit due to the partial profit-taking.
⌛️4-Hour Timeframe
Current Situation: After forming a low at 3652, the volume has significantly decreased. Given the weekend lull, market momentum has completely dissipated. The 99-period SMA is approaching, potentially acting as the last hope for bullish momentum to re-enter the market.
🔑Key Levels:
Resistance: 3960 (first resistance), 4063 (key resistance)
Support: 3652 (current low)
⚡️Indicators:
RSI: Watch for a break above 54.46 for bullish momentum confirmation.
99-period SMA: Approaching price, may provide support or resistance.
📈Bullish Scenario
Entry: Break above 3960.
Target: Initial target at 4063.
If 4063 is broken and price stabilizes above this level, a significant upward move could be expected, especially benefiting Ethereum ecosystem coins.
Confirmation: RSI breaking above 54.46.
Long Position
Primary Trigger: Enter on a break above 3960.
Secondary Trigger: Enter on a break and stabilization above 4063 for a stronger bullish confirmation.
RSI Confirmation: Watch for a break above 54.46 to confirm bullish momentum.
Note: Monitor the price action around 4063 carefully, as it is a crucial resistance level.
📉Bearish Scenario
Entry: First trigger at 3719 (risky), main entry on a break below 3652.
Target: Following a break below 3652, look for confirmation of bearish momentum with a break below 41.03 on the RSI.
Short Position
Primary Trigger: Break below 3652.
Secondary Trigger: For a riskier entry, consider 3719, but the main focus should be on 3652.
RSI Confirmation: A break below 41.03 would confirm bearish momentum.
📝Ethereum is currently in a consolidation phase with key support at 3652 and resistances at 3960 and 4063. The low volume suggests that a significant move could be imminent. Traders should watch for breaks of these critical levels to enter positions, with volume and RSI serving as additional confirmation indicators. Always keep an eye on market conditions and adjust positions accordingly.
🧠💼It's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2.
🫶If you enjoyed this analysis and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
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