Ethereum ($ETH /USDT) on a 5-minute time frame, highlighting key resistance and support zones, along with a potential breakout scenario.
Analysis:
Resistance Zone:
The price is facing resistance around the $2,370 - $2,380 zone, as indicated by the purple shaded area. Multiple attempts have been made to break above this level, but each time the price was rejected, signaling a strong supply zone.
Support Zone:
The support area is around $2,334 - $2,336, where the price has bounced multiple times. This indicates strong buying pressure in this area, providing a solid base for the price.
Bearish Rejections:
Previous attempts to break through the $2,370-$2,380 resistance zone were met with bearish pressure, pushing the price lower. This shows sellers are active at these levels.
Target Strategies:
Bullish Scenario:
Entry Point: Enter a long trade once the price breaks and closes above the $2,370 resistance zone, confirming a breakout.Target
1: Set a target at $2,400, which is a psychological resistance and slightly above the current resistance zone.
Target 2: If the momentum continues, aim for $2,425, which represents the next significant resistance level.
Stop Loss: Place a stop loss below the $2,334 support zone, as a breakdown below this level would invalidate the bullish scenario.
Bearish Scenario:
Entry Point: If the price fails to break above the resistance and falls back to the $2,334 support, consider entering a short trade if it breaks below this level.Target 1: Aim for a target around $2,300, which would be the next potential support area.Stop Loss: Set a stop loss just above the $2,370 resistance zone to protect against a bullish reversal.
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