Daily Price Outlook
- Ethereum's technical indicators show a strong bullish bias as it rebounds from the critical $1,700 support level, surpassing the triple top pattern at $1,775 and targeting resistance at $1,841.
- A bearish correction may occur if candles close below $1,840, potentially leading to support levels at $1,800 or $1,775 for ETH/USDT.
- A bullish breakout above $1,840 could drive Ethereum towards the next target level of $1,916, but caution is advised as the RSI and MACD indicate potential overbought conditions, offering a chance to short ETH below $1,840.
Taking a look at Ethereum's technical indicators, we see a strong bullish bias as it bounces off the critical support level of $1,700, represented by the exponential moving average.
Ethereum recently broke through the triple top pattern at $1,775, indicating a bullish surge towards the next resistance level at $1,841. The presence of a descending trend line on the four-hourly timeframe adds weight to this resistance level.
However, a bearish correction may be triggered if candles close below $1,840, potentially leading ETH/USDT to find support at $1,800 or even lower at $1,775.
On the flip side, a bullish breakout above $1,840 could propel Ethereum's price towards the next target level of $1,916.
It's worth noting that the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) have entered the overbought zone, suggesting a potential slowdown in bullish momentum and a possible opportunity to short ETH below the $1,840 level.
In summary, $1,840 holds great significance as today's pivotal point, warranting close monitoring. Traders should consider a sell position below this level and anticipate a buy position above it.
ETH/USD Price Chart – Source: Tradingview
ETH/USD – Trade Idea
Entry Price – Sell Below 1835
Stop Loss – 1885
Take Profit – 1698
Risk to Reward – 1 : 2.75
Profit & Loss Per Standard Lot = +$1370/ -$500
Profit & Loss Per Micro Lot = +$137/ -$50
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