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.
Whatโs your perspective on ETH/USDT? Share your insights below!
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