📈 Ethereum Market Analysis: Navigating the Range Box🔍Let's dive into today's market analysis! Overall, the market is still range-bound, but there has been a minor downward correction since yesterday. It seems like we're experiencing a correction of that minor dip today, but in reality, all these movements are happening within a range box, and they don't hold much significance in determining the long-term trend. Ethereum (ETH) was an exception yesterday, briefly dipping downwards before re-entering its short-term range box.
🔄If we look at it from a scalping perspective, Ethereum is currently within a range box from $3111 to $3167. However, this box is quite small and is more meaningful in the 1-hour timeframe rather than the 4-hour one we're analyzing. In the 4-hour timeframe, the price is within a larger box from $2899 to $3283, and we don't have a clear trend to rely on for trading. So, until a trend emerges, we're forced to reduce our targets and not expect sharp, dramatic price movements. If you're comfortable with short-term trading and not seeking high risk-to-reward ratios, you can trade within this range. But if you're only comfortable with high risk-to-reward ratios, I suggest you wait until the daily box is broken for a sharp move.
📈For a long position, if you're a scalper and can control yourself in lower timeframes without getting too excited, you can enter a long position after breaking $3167. However, be mindful that, as I mentioned, you shouldn't expect high risk-to-reward ratios. The confirmation for this area would be the midline of the RSI, or 50, coinciding with the break of $3167. However, keep in mind that currently, the SMA25 is above the candlesticks, and the ideal scenario for this position is for the SMA25 to be broken and for the price, when breaking $3167, to play the role of support rather than resistance and cause the price to rise. The area where the price dipped is also the Point of Control (POC) of the fixed range volume profile, which is another confirmation that the price has strong support. For a more confident long position, wait for the price to reach $3283 and see its reaction.
🎯If the market experiences a decline, our first trigger is $3111, but the point to note here is that just below this area, we have the POC, which is a very important area and may prevent the price from coming down easily and hitting the target, maintaining momentum. So, I recommend waiting for the price to reach the support range we had previously and, based on its reaction, finding its trigger. Lastly, keep in mind that today is Sunday, and the volume is very low. Overall, because we're inside a range box, traders are trading less, resulting in low market volume. So, if I were you, I'd reduce my risk a little to avoid losing the profits I've made in these days.
🧠💼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
