ETH/USDT 4-Hour Chart Trade Plan
Ethereum (ETH/USDT) is currently trading at $3,350.78, after a sharp drop from the recent highs. Let's analyze the setup and formulate a trading strategy.
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Market Analysis
1. Trend Analysis:
ETH/USDT recently faced a strong rejection near $3,700, leading to a sharp drop towards the current support zone at $3,350.
Price action shows bearish momentum but could consolidate or bounce near this support.
2. Key Levels:
Resistance: $3,400 - $3,500 (short-term resistance).
Support: $3,300 - $3,250 (next major support zone).
3. Volume:
High selling volume confirms bearish dominance. Watch for signs of decreasing volume near the current level, which might indicate selling exhaustion.
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Trade Plan
Scenario 1: Long Trade (Bounce from Support)
Entry: $3,330 - $3,350 (confirmation needed with bullish candlestick or volume increase).
Take Profit:
TP1: $3,400 (minor resistance).
TP2: $3,500 (stronger resistance).
Stop Loss: Below $3,300.
Risk/Reward Ratio: ~2:1
Scenario 2: Short Trade (Breakdown)
Entry: Below $3,300 (wait for candle close below support).
Take Profit:
TP1: $3,250 (first support).
TP2: $3,200 (next significant level).
Stop Loss: Above $3,350.
Risk/Reward Ratio: ~2.5:1
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Risk Management
Allocate only 1-2% of capital to manage risk.
Use appropriate leverage based on your risk tolerance.
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Conclusion
ETH/USDT is at a pivotal support level. Wait for clear signals before entering, as the current market is highly volatile. Stick to the plan, and always prioritize proper risk management.
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