$ETH has formed an ascending triangle pattern on the 8 hour chart which is a bullish continuation signal.
This pattern suggests that buyers are gaining control and a breakout could bring substantial upside movement.
Let’s break it all down:
Key Levels to Watch.
1 Buy Zone:
$3,900 - $4,050
This range is ideal for accumulation as Ethereum is consolidating near the resistance of the triangle.
2 Targets:
First Target: $4,300
Second Target: $4,500
3 Stop Loss:
Place a stop loss below $3,750 to manage risks if the pattern fails.
Why This Setup Looks Promising.
1. Bullish Structure: The ascending triangle shows higher lows indicating strong buying interest.
2. Volume Confirmation: Look for increasing volume during the breakout to validate the move.
3. Market Sentiment: Ethereum is benefiting from broader crypto market strength.
What’s Next.
Before Breakout: Accumulate within the buy zone but keep an eye on rejection around $4,100.
On Breakout: A close above $4,150 (triangle resistance) signals strength.
Use the breakout to add more positions.
Watch for Retests: If ETH retests the $4,100 level after breaking out it could be a final chance to enter.
Pro Tip:
Stick to your risk reward ratio (minimum 1:2).
Monitor key news events or announcements that could impact Ethereum's price movement.
Ethereum is showing a strong potential for a rally, but always stay cautious and adjust your positions based on market conditions. Happy trading.
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