Hey RkY Crypto Family! Today we will discuss about a detailed technical analysis of the ETH/USDT daily chart & my analysis to help you make informed trading decisions.
Before we start!! I'm spending hours to analysis and write this article for you so don't lazy / forget hit the FOLLW button it's completely 🆓 FREE.
First we will talk about the PO3 ICT AMD Strategy and observation key points.
1. Accumulation, Manipulation, and Distribution Zones.
- Accumulation: Grey Zone - This is where smart money buys assets quietly. ETH was consolidating within this range before starting an upward movement.
- Manipulation: Red Zone - This is a trap for retail traders where prices are moved to induce panic or excitement. ETH experienced significant volatility within this range.
- Distribution: Green Zone - This is where smart money sells assets. The projected movement suggests ETH could enter this phase soon.
Second we take some decisions base on the pattern - key level so here's 👇
2. Price Pattern and Key Levels:
- Descending Triangle Breakout: ETH recently broke out from a descending triangle pattern, indicated by the sloping trendline resistance.
- Key Support (M): Around $2842.08 - This is a strong support level where ETH previously found buying interest.
- Resistance (D): Around $3689.65 - This is the level ETH needs to sustain above to confirm the breakout.
Now let's talk about Moving Average Support & Resistance.
3. Moving Averages:
- 50-Day Moving Average (Red Line): Currently acting as a dynamic resistance. ETH needs to break and hold above this for continued bullish momentum.
- 100-Day Moving Average (Orange Line): Slightly below the current price, providing additional support.
- 200-Day Moving Average (Blue Line): Farther below, indicating long-term support and overall bullish trend.
4. Stochastic RSI Indicator:
- The Stochastic RSI is currently in the overbought zone. This suggests ETH might experience a short-term pullback or consolidation before resuming its upward movement.
5. Volume Analysis:
- A breakout with increasing volume indicates strong buying interest. Watch for sustained volume to confirm the breakout’s validity.
Trading Positions:
1. Entry Points:
- On Pullback: If ETH pulls back to retest the breakout level around $3500 or the 50-day moving average, it could be a good buying opportunity.
- On Momentum: If ETH continues to rise with strong volume and breaks above recent highs, consider entering on the momentum.
3. Stop-Loss:
- Below Support: Set a stop-loss below $3150 to manage risk in case of a false breakout or market reversal.
2. Targets:
- Short-Term Target: $4000 - This is a psychological level and near-term resistance.
- Medium-Term Target: $4200 - This aligns with the projected movement in the distribution zone.
4. Risk Management:
- Position Sizing: Use appropriate position sizing to manage risk, considering the high volatility of cryptocurrencies.
So Guys finally what's the summarize of this analysis simply here 😉
ETH/USDT is showing promising signs of a bullish breakout from a descending triangle pattern. Key levels to watch are $3689.65 for confirming the breakout and $4000 as the next resistance. Manage your trades with proper risk management and be prepared for potential pullbacks given the overbought Stochastic RSI. Happy trading! 🚀