Looking at the $ETH chart on the 4-hour timeframe, here’s my analysis:
Current Situation:
Price: $2626.00
MA (7): $2645.91, meaning the price is currently below the 7-day moving average, signaling short-term bearish momentum.
MA (25): $2663.93, another resistance level near the current price.
MA (99): $2543.01, which might act as strong support.
RSI (6): 25.36, which is deep in oversold territory, indicating the asset is potentially undervalued and could bounce soon.
MACD: MACD is currently at -11.70, with the signal line (DEA) at 13.65. This indicates strong bearish momentum.
Potential Entry and Exit Points:
Entry Point:
The current RSI suggests that ETH is oversold, which might be a good buying opportunity soon. A reasonable entry would be around $2543, where the 99-day moving average is, and it's a level that has acted as support before.
If the market continues to decline, you might want to wait for a better entry at $2469, the next support level.
Exit Point:
For a conservative take-profit, aim for $2645 to $2663, where the 7-day and 25-day moving averages are located. These will act as resistance.
If ETH gains strength and breaks through these resistances, it could target $2769, where the previous peak occurred.
For a more aggressive exit, you might hold until the price reaches near the $2690 - $2700 range.
Warning:
Despite the oversold RSI, the MACD shows significant bearish momentum, so the downtrend could continue. If the price breaks below $2543, there could be further downside risk.
Set a stop-loss around $2510 to manage your risk in case the market breaks down further.
Disclaimer: This is just my analysis based on the chart. I'm not responsible for any losses. Please do your own research and risk management when making trades.
Let me know your thoughts!
