📊 Technical Overview
🔺 Rising Wedge Pattern:
A rising wedge forms when price makes higher highs and higher lows, but the slope of the highs is less steep than that of the lows, indicating weakening bullish momentum.
This pattern often occurs after a significant uptrend or during a consolidation phase before a breakdown.
In this case, ETH formed the wedge over several sessions, with narrowing price action and fading bullish volume.
🔴 Resistance Zone:
Price faced heavy rejection near the $2,617 – $2,663 level.
This zone has acted as a strong supply area, limiting upside potential.
The upper boundary of the wedge aligns with this horizontal resistance, making it a strong confluence area for potential reversals.
🟢 Support Zone:
The projected target area lies around $2,245 – $2,290, which coincides with prior swing lows and the base of the wedge.
This area is expected to act as a major demand zone and potential support if the price continues downward.
🧮 Trade Setup:
Entry Trigger: Price breaking below the wedge’s lower trendline and closing below key structure confirms bearish intent.
Short Entry: Current levels around $2,529 offer a decent short entry after confirmation.
Stop Loss: Positioned above the recent highs / wedge resistance at $2,663.25, providing protection if the market invalidates the setup.
Take Profit: Measured move from the wedge’s height gives a downside target of $2,245.73.
⚖️ Risk Management and Rationale:
The risk-to-reward ratio (RRR) is favorable, offering more reward potential than risk.
The setup allows for clear invalidation above the resistance zone, reducing ambiguity.
The breakdown aligns with bearish momentum and weakening structure, supported by declining volume (if observed on volume indicators).
🧭 Market Context:
ETH has been struggling to sustain momentum above the $2,600 mark despite bullish sentiment across crypto markets.
The failure to make new highs and the presence of a rising wedge signals exhaustion among buyers.
If broader market sentiment turns risk-off, ETH could see accelerated selling pressure toward the next key support zone.
📌 Conclusion:
This idea highlights a short opportunity in ETHUSD based on classic technical analysis. The rising wedge breakdown, combined with resistance rejection and clean support targeting, offers a technically sound trade. Always ensure proper risk management and position sizing.
📉 Bias: Bearish
⏱️ Timeframe: Short- to Medium-Term
💼 Strategy: Pattern-based swing short
🔺 Rising Wedge Pattern:
A rising wedge forms when price makes higher highs and higher lows, but the slope of the highs is less steep than that of the lows, indicating weakening bullish momentum.
This pattern often occurs after a significant uptrend or during a consolidation phase before a breakdown.
In this case, ETH formed the wedge over several sessions, with narrowing price action and fading bullish volume.
🔴 Resistance Zone:
Price faced heavy rejection near the $2,617 – $2,663 level.
This zone has acted as a strong supply area, limiting upside potential.
The upper boundary of the wedge aligns with this horizontal resistance, making it a strong confluence area for potential reversals.
🟢 Support Zone:
The projected target area lies around $2,245 – $2,290, which coincides with prior swing lows and the base of the wedge.
This area is expected to act as a major demand zone and potential support if the price continues downward.
🧮 Trade Setup:
Entry Trigger: Price breaking below the wedge’s lower trendline and closing below key structure confirms bearish intent.
Short Entry: Current levels around $2,529 offer a decent short entry after confirmation.
Stop Loss: Positioned above the recent highs / wedge resistance at $2,663.25, providing protection if the market invalidates the setup.
Take Profit: Measured move from the wedge’s height gives a downside target of $2,245.73.
⚖️ Risk Management and Rationale:
The risk-to-reward ratio (RRR) is favorable, offering more reward potential than risk.
The setup allows for clear invalidation above the resistance zone, reducing ambiguity.
The breakdown aligns with bearish momentum and weakening structure, supported by declining volume (if observed on volume indicators).
🧭 Market Context:
ETH has been struggling to sustain momentum above the $2,600 mark despite bullish sentiment across crypto markets.
The failure to make new highs and the presence of a rising wedge signals exhaustion among buyers.
If broader market sentiment turns risk-off, ETH could see accelerated selling pressure toward the next key support zone.
📌 Conclusion:
This idea highlights a short opportunity in ETHUSD based on classic technical analysis. The rising wedge breakdown, combined with resistance rejection and clean support targeting, offers a technically sound trade. Always ensure proper risk management and position sizing.
📉 Bias: Bearish
⏱️ Timeframe: Short- to Medium-Term
💼 Strategy: Pattern-based swing short
Penerbitan berkaitan
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Penerbitan berkaitan
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.