Ethereum Name Service (ENS) is currently undergoing a complex price movement, forming a potential diametric pattern on the 4-hour chart. This pattern suggests a potential bullish reversal after a period of consolidation and decline.
Technical Analysis:
* Diametric Pattern: The formation of a diametric pattern indicates a potential reversal in the trend.
* Wave Structure: The price is currently in wave e of wave C of the larger diametric.
* Key Resistance Levels: The chart highlights several key resistance levels that could impact the price movement.
Trading Strategy:
A potential bullish scenario could unfold after the completion of wave D of the larger diametric and the end of wave D's downward movement. This could lead to a significant price increase.
However, it's important to exercise caution and manage risk. A daily candle closing below the invalidation level would invalidate the bullish outlook.
Risk Management:
* Stop-Loss Orders: Always use stop-loss orders to limit potential losses.
* Position Sizing: Manage your position size to avoid excessive risk.
* Diversification: Spread your investments across multiple assets.
Disclaimer: This is not financial advice. Please do your own research before making any investment decisions. Cryptocurrencies are highly volatile, and past performance is not indicative of future results.