Ethereum (ETH) Breakout Potential – Trend Reversal in Sight?Ethereum (ETH) is showing signs of breaking out from a descending channel on the 4-hour timeframe. The price has been consolidating near the upper boundary of the channel, and a breakout above this resistance could signal the start of an uptrend.
• Key Levels:
• Resistance to break: $1,950 - $2,000
• Potential targets: $2,274, $2,335
• Support: $1,800
• Technical Indicators:
• The 200 EMA (blue line) is currently above the price, indicating a broader downtrend. However, a successful breakout could challenge this trend.
• Price action is forming higher lows, suggesting increasing buying pressure.
• If the breakout is confirmed, we could see a move towards $2,274 and $2,335 in the coming days.
• Trade Plan:
• Entry: Upon confirmed breakout and retest of the channel.
• Stop-loss: Below $1,880 (depending on risk appetite).
• Take profit: $2,274 - $2,335.
This setup presents a potential trend reversal opportunity for ETH if the breakout sustains. However, failure to break resistance may result in a rejection back into the descending channel.
What are your thoughts on this setup? Let me know in the comments!
