📈ETH: Identifying Key Entry Points in Futures Trading👑🔍Today is a crucial day for altcoins, as they have reached significant support levels. The market exhibits clear signs of buyer weakness, with selling volumes substantially outpacing buying volumes. Given these conditions, short positions are more favorable. The focus of today's analysis is Ethereum (ETH), the leading asset in the DeFi space that continues to attract a large number of enthusiasts. Let's examine potential entry points for ETH in futures trading.
🔄In the last analysis, I provided two triggers for positions—one long and one short. Both positions achieved their targets if closed early as advised, resulting in profitable trades. If you entered these positions, please share your experiences in the comments; it’s gratifying to see you profit from the provided triggers. If you missed these triggers, don't worry—there are always opportunities in the market. Pay close attention to the triggers I provide to avoid missing future movements and to secure profits.
📉The chart clearly shows a downtrend for ETH, with a descending triangle pattern indicating a potential move lower. The trigger for this triangle is the support at $2,880. If a candle closes below this level, we can expect the price to move down to the $2,614 area, providing a suitable target. Confirmation of this downward momentum can be reinforced by the RSI breaking below its support at 36.59. This would allow us to confidently maintain our short positions. The volume of the candles is also crucial, as increasing selling volume could lead to a sharper decline. Thus, this trigger offers a solid short position opportunity.
📈Despite the strong selling pressure, we should always prepare for multiple scenarios and avoid being surprised by market movements. Like a general with multiple battle plans, traders should anticipate various outcomes. Although I see a higher probability of a decline, I still consider potential long triggers. Given the strong downtrend and weak buyer momentum, I would enter a long position only if a candle stabilizes above $2,964. However, the risk for this position would be half of the usual, and I would close it quickly. A more reliable long trigger would be $3,283, which becomes logical if the SMA99 moves below the candles, removing a significant dynamic resistance.
📝In conclusion, Ethereum's current market conditions favor short positions due to a clear downtrend and significant selling pressure. The primary short trigger at $2,880 and target of $2,614 offer a promising setup. However, always prepare for alternative scenarios. For potential upward movements, consider long positions with a candle close above $2,964, but manage these positions with reduced risk and quick exits. The more robust long trigger at $3,283 could provide a safer entry as market dynamics change. Stay vigilant, manage your risks, and adapt to market movements to capitalize on trading opportunities.
🧠💼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.
