Short Opportunity on Ethereum (ETH)
Ethereum has recently failed to reclaim key resistance near \$2,800 and is showing signs of renewed bearish momentum. A brief pullback toward \$2,705 is likely before any meaningful bounce back to retest \$2,800. This setup offers a shorting opportunity with defined risk and reward.
Technical Rationale
Resistance at \$2,800: Price has been unable to close convincingly above this level on multiple attempts, indicating strong overhead supply.
Bearish Momentum: Recent lower highs on the 4-hour chart and a break of the short-term uptrend line suggest sellers are in control.
Support Target at \$2,705: The next logical area where buyers may step in confluence of the 50-period moving average (4h) and prior swing low from late June.
Outlook
If ETH reaches \$2,705 and shows bullish signs (hammer or bullish divergence on RSI), expect a retest of the \$2,800 area. Conversely, a decisive break below \$2,705 could open the path to \$2,650 and lower. Adjust your plan accordingly based on how price behaves around these key levels.
Disclaimer: Always conduct your own due diligence and size positions according to your risk tolerance. Markets can be unpredictable, use proper risk management.
Ethereum has recently failed to reclaim key resistance near \$2,800 and is showing signs of renewed bearish momentum. A brief pullback toward \$2,705 is likely before any meaningful bounce back to retest \$2,800. This setup offers a shorting opportunity with defined risk and reward.
Technical Rationale
Resistance at \$2,800: Price has been unable to close convincingly above this level on multiple attempts, indicating strong overhead supply.
Bearish Momentum: Recent lower highs on the 4-hour chart and a break of the short-term uptrend line suggest sellers are in control.
Support Target at \$2,705: The next logical area where buyers may step in confluence of the 50-period moving average (4h) and prior swing low from late June.
Outlook
If ETH reaches \$2,705 and shows bullish signs (hammer or bullish divergence on RSI), expect a retest of the \$2,800 area. Conversely, a decisive break below \$2,705 could open the path to \$2,650 and lower. Adjust your plan accordingly based on how price behaves around these key levels.
Disclaimer: Always conduct your own due diligence and size positions according to your risk tolerance. Markets can be unpredictable, use proper risk management.
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.