BUY OPPORTUNITYInstrument: ETH/USD
Buy Entry: $3627 (Once price changes polarity from resistance to support)
Take Profit (TP): $4000
Stop Loss (SL): $3489.99
Risk/Reward ratio: 1:2
Technical Analysis:
Bollinger Bands: The widening of the Bollinger Bands after a consolidation between $3437 and $3310 suggests an increase in volatility, signaling a potential breakout. The upward movement is expected, indicating that ETH might be gearing up for a bullish move.
Polarity Change: Wait for the price to change polarity at the $3627 level—this means the price should first approach this level as resistance and then break above it, turning it into support. A successful retest of this level as support will be the confirmation for the buy entry.
Target of $4000: The $4000 level is a major psychological resistance level. A breakout above this could indicate that the price will continue its bullish momentum.
Market Trend: The general trend appears bullish due to the widening of Bollinger Bands and increasing volatility. Also, the decreasing BTC.D (Bitcoin Dominance) is a positive sign for altcoins, with Ethereum likely to outperform Bitcoin.
Fundamental Analysis:
Whale Accumulation: The accumulation by whales (large Ethereum holders) is significant. Mid-sized wallets holding between 100–100,000 ETH are at a historic low in terms of their share of the supply. This indicates that whales are absorbing the supply, which is typically a bullish signal, suggesting confidence in Ethereum's long-term outlook.
Smaller Wallets: Wallets holding less than 100 ETH are also at a four-year low in holdings, further indicating the dominance of whales in the market. As the smaller players exit, large investors are positioning themselves for long-term gains.
Bullish Sentiment: Whale behavior, combined with the market's technical indicators, supports a bullish outlook for Ethereum, making it an attractive investment for those with a longer-term perspective.