$ETH #
The ETH/USDT 4-hour timeframe chart reveals a potential shift in momentum and offers insights for traders:
Recent Price Action:
- Breakout: ETH has recently broken out of the descending trendline (marked in red) that had been in place since late April. This is a significant bullish signal, suggesting a potential reversal of the short-term downtrend.
- Retest and Support: After the breakout, the price retested the trendline, which now appears to be acting as a support level. This confirms the validity of the breakout and increases the likelihood of further upward movement.
- Current Price: The current price is hovering above the trendline and the 200-period EMA, both of which are acting as support.
Trading Considerations:
- Potential Long Entry: The breakout above the descending trendline and the bullish indicators suggest a potential long entry opportunity. Traders could consider entering a long position around the current price level or wait for a pullback to the trendline or the 200 EMA for a more conservative entry.
- Stop-Loss: A stop-loss order could be placed below the recent swing low (around 3260 USDT) or the trendline, depending on individual risk tolerance.
- Take-Profit Targets: Potential take-profit targets could be set at the following levels:
* 3500 USDT (psychological resistance level)
* 3600 USDT (previous high)
* Higher levels based on Fibonacci extensions or other technical tools.
It's crucial to wait for confirmation of the breakout and bullish momentum before entering a trade. A false breakout could lead to losses.
