Entry: $2,412 (current price level)
Stop-loss: $2,312 (below recent support level)
Take-Profit: $2,734 (targeting a previous resistance zone)
Rationale:
Bullish Setup: We are aiming for a long position on ETH/USD based on the current consolidation and potential for a breakout above key resistance at $2,429. A close above this level could signal the beginning of an upward move.
Risk-Reward: The trade offers a favorable risk-to-reward ratio of approximately 3:1, with a $100 downside risk (stop-loss) and $320 upside potential (take-profit).
Key Resistance Zones:
$2,429 – Initial resistance. A break and close above will confirm bullish momentum.
$2,560 – The next significant resistance, marked by the Order Block (OB).
$2,734 – Final take-profit level.
Trade Management:
Stop-Loss: Placed at $2,312, slightly below recent support to allow for minor fluctuations while protecting capital in case of a market reversal.
Volume Confirmation: Watch for increased volume on the breakout above $2,429 to confirm strength in the move.
Market Structure Shift: We’re looking for ETH to reclaim the bullish structure and invalidate the previous bearish market structure after the recent pullback.
If the price fails to break above $2,429, be cautious as further consolidation or downside pressure could lead to a bearish continuation. Adjust positions accordingly and manage risk carefully.