• 4h time frame
At time of analysis, on 26th July, ETH price is $ 2.236, with all indicators on 4h time chart pointing out to an immediate pullback to previous .
This could be a good opportunity for daily or swing traders to short!
is strongly overbought on 4h as price broke the upper side of the channel, being now close to previous resistance levels. For this reason it is very probable the level won't hold and the price will target next lower support at 2190-2150 area.
Historically whenever the upper boundary of the channel was broken an immediate pullback to the occurred, this corresponding to the range previously mentioned.
ENTRY PRICE: > $ 2.300
TARGET I: $ 2.180 (if the downtrend continues)
TARGET II: $ 2.110
TARGET III: $ 2.040
STOP LOSS: $ 2.400
After the first short target, price could continue the move to the upside, so it would be better to wait for confirmations before setting up the selling orders at the other two identified targets. In fact, historically, whenever the price broke the upper level of channel after a long series of testing the lower side, price started a period of consolidation between the upper and the levels of the channel. For this reason, I expect with very high probability at least three waves of higher highs and higher lows.
Today, as nicely predicted yesterday price hit first short target which acted as support as it is now continuing the move to the upside. Personally, based on 4h time frame analysis, I think that after the immediate pullback up to first target, this corresponding to the trendline identified by the of the channel, it will continue with its move to the upside, as daily time frame is still looking very .
In fact, looking at price chart on the daily time frame we can see how index is still far away from being overbought (59.5 at time of analysis), currently headed to test resistance identified at 62 level, while price looks will test the upper level of channel, with the just crossed and the recent confirmation in .
ENTRY PRICE: $ 2.185
TARGET I: $ 2.340
TARGET II: $ 2.535
TARGET III: $ 2.720
Swing traders could therefore alternate short and long positions to better capture all price movements between the boundaries settled by the channel, keeping in mind markets in general are strongly influenced by the recent Bitcoin outbreak.
insane profits for spot traders!