🚀 Candlestick Formation Analysis:

• Bullish Continuation: ETH is recovering well from recent lows, pushing past the 7-EMA, showing signs of bullish momentum.

• Resistance and Support: The recent peak at $2,643.20 serves as an immediate resistance level, while the 25-EMA around $2,587.31 offers nearby support.

📊 Indicator Analysis:

1. Exponential Moving Averages (EMAs):

• 7-EMA ($2,611.54): ETH is trading above this short-term EMA, indicating current bullish strength.

• 25-EMA ($2,587.31): A close support level, with the price maintaining above it for several candles.

• 99-EMA ($2,512.05): This level represents long-term support, highlighting a solid base for ETH.

2. Stochastic RSI (55.40): Mid-range, suggesting room for upward movement without overbought concerns.

3. MACD (DIF: 19.78, MACD Line: -1.76): The MACD line is close to crossing above the signal line, hinting at a bullish shift.

4. RSI Levels:

• RSI(6) at 69.25: Approaching overbought territory, indicating caution for further upward moves.

• RSI(12) at 65.52 & RSI(24) at 65.17: Showing steady bullish momentum, though nearing overbought levels.

🔍 Volume Analysis:

• Rising Volume: The increasing volume on recent green candles signals buying interest.

• Confirmation Needed: Higher volume on a breakout above $2,643.20 would confirm bullish strength, while low volume on a dip may suggest consolidation.

💡 Trading Strategy:

Long Position Strategy:

• Entry Price: Look to enter a long position if ETH breaks above $2,630, confirming momentum beyond recent highs.

• Stop-Loss: Place a stop-loss at $2,585, just below the 25-EMA, to protect against a sudden reversal.

• Take-Profit: Target $2,675, as a strong resistance level close to previous highs. Consider trailing the stop if bullish momentum continues.

Short Position Strategy:

• Entry Price: Consider a short position if ETH fails to hold above $2,610 and drops below the 7-EMA.

• Stop-Loss: Set a stop-loss at $2,645, above recent highs, to avoid losses if bullish momentum resumes.

• Take-Profit: Aim for $2,550, near the 99-EMA, where buyers may re-enter.

⚠️ Risk Management Tip:

• Maintain a 1:2 risk-to-reward ratio. Volume spikes will be key to confirming either breakout or breakdown scenarios.

🚨 Key Insight: ETH is positioned for a potential breakout, but with indicators nearing overbought levels, a close watch on volume and price action around $2,643.20 is essential. Trade cautiously with well-defined entries and exits!