ETHUSDT 4H Chart Review๐ General Technical Context:
Prior Trend: Upward (strong rally from around 3,150 USDT).
Current Structure: After breaking out of the ascending channel, there was a strong decline, but is currently rebounding upward โ it looks like a test of prior support as resistance.
๐ Key Horizontal Levels (Support/Resistance):
Resistance:
3,794 USDT โ strong resistance resulting from the prior high (green line).
3,943 USDT โ high of the ascending channel.
Support:
3,504 USDT โ prior support, now potentially acting as resistance (red line).
3,383 USDT โ July support.
3,132 USDT โ strong base support, potential correction low.
๐ Technical Patterns:
Broken Upward Channel (orange lines): A clear downward breakout suggests a weakening of the previous trend.
Downward Trendline (purple): The current price is approaching it โ a test and reaction (bounce or breakout) may occur.
๐ Stochastic RSI (oscillator at the bottom):
The indicator is entering the overbought zone (>80).
This may indicate an impending slowdown or correction, especially if the price encounters resistance at the purple downward trendline.
๐ฎ Scenarios:
โ
Bullish (if the breakout is upward):
A breakout of the purple trendline and resistance at 3,794 USDT could signal further gains towards 3,943 USDT or higher.
Confirmation could come from a retest of the purple line as support.
โ Bearish (if resistance rejected):
Rejection from the trendline or the 3,794 USDT zone = possible correction to 3,504 or 3,383 USDT.
Break of 3,383 = potential decline to the 3,132โ3,150 USDT zone.
๐งญ Conclusion:
The market has regained strength from the local low but is at a potentially strong resistance zone.
Stochastic RSI overbought + near resistance = high risk of a near-term correction.
The key will be price performance within the purple trendline and 3,794 USDT.
