ETHUSDT Short Setup from Local Resistance and Rising Channel
ETHUSDT has reached a key local resistance zone at $2,562.00, which aligns with the upper boundary of a rising channel. This area has historically acted as dynamic resistance, and price action is showing signs of stalling after a strong upward move.
A short position is taken at $2,562.00, anticipating a move down to the lower channel support near $2,337.16.
This setup leverages both horizontal and diagonal resistance, ideal for traders looking for a mean reversion setup within a rising structure.
🧩 Trade Parameters :
- Entry: $2,562.00
- Stop Loss: $2,636.73
- Take Profit: $2,337.16
🔢 Risk:Reward Calculation:
- Risk: 2,636.73 - 2,562.00 = $74.73
- Reward: 2,562.00 - 2,337.16 = $224.84
- Risk:Reward Ratio: 1 : 3.01 ✅ (Very favorable)
✅ Bias:
- Bearish rejection from channel top and prior resistance
🔄 Confirmation:
- Look for rejection wicks, bearish engulfing patterns, or a break of lower timeframe support levels
❌ Invalidation:
- Strong breakout and hold above $2,636.73
This is a high-RR short setup with clear structure and invalidation — well-suited for traders aiming for precision entries on rejection zones.
A short position is taken at $2,562.00, anticipating a move down to the lower channel support near $2,337.16.
This setup leverages both horizontal and diagonal resistance, ideal for traders looking for a mean reversion setup within a rising structure.
🧩 Trade Parameters :
- Entry: $2,562.00
- Stop Loss: $2,636.73
- Take Profit: $2,337.16
🔢 Risk:Reward Calculation:
- Risk: 2,636.73 - 2,562.00 = $74.73
- Reward: 2,562.00 - 2,337.16 = $224.84
- Risk:Reward Ratio: 1 : 3.01 ✅ (Very favorable)
✅ Bias:
- Bearish rejection from channel top and prior resistance
🔄 Confirmation:
- Look for rejection wicks, bearish engulfing patterns, or a break of lower timeframe support levels
❌ Invalidation:
- Strong breakout and hold above $2,636.73
This is a high-RR short setup with clear structure and invalidation — well-suited for traders aiming for precision entries on rejection zones.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.