**Ethereum Market Analysis – September 20 (4-hour chart)**
Let's break down the current market structure: The upward movement started from 2,450, marked by 4 pushes, which reflect a typical 7-wave price pattern. Looking at the price action, after these 4 pushes, we see a closing line with a wick and a doji candle, while trading volume has dropped. This suggests that buying strength is fading, and the market might be overloaded with buyers. This could lead to a washout, or a price pullback.
Now, looking at the MACD indicator, after a series of green bars, the MACD is starting to close, signaling a potential price pullback. However, this drop might trigger a wave of buying, followed by a sharp decline to shake out the long positions, and then a rally to squeeze the shorts.
In my view, the price is likely to drop first, followed by a rebound. Here's a simple trade strategy:
**Trade idea**:
- Enter partially if the price drops below 2,500. If the price rises above 2,500, add to the position.
- Set a stop loss at 1% risk, and aim for a profit target of 3.5% to 5%.
- This gives a risk/reward ratio of about 1:4, making it a solid strategy with high potential.#Write2Earn! #ETHETFsApproved #Write2Earn! #ETH🔥🔥🔥🔥 #Write2Earn!
