Daily Trade Ideas

ETH/USD Price Analysis and Trade Forecast: Daily Trading Signal

By LonghornFX Technical Analysis
Jun 21, 20232 min
Ethusd

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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ETH/USD

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