ETH Poised for Post-ETF Approval Pullback: Short to 3.2k Zone

31 thg 5, 2024

Ethereum surged over 30% in anticipation of its much-awaited ETF approval, but the excitement may be short-lived. As traders who missed the initial rally eye the $2.9k to $3.2k support zone, a pullback seems likely. With ETH currently trading around $3.8k, a short trade to this support area presents an attractive opportunity.

Technical Analysis:

• Visible Range Volume Profile (VRVP): The VRVP indicates a significant volume zone at $3k, suggesting strong support at this level.
  
• Average Directional Index (ADX): The ADX, a momentum indicator, is losing strength, signaling a weakening trend.
  

Proposed Short Trade:

Entry Price: 3.8k zone USDT
Take Profit: 3k zone USDT
Stop Loss: 4.110 USDT

Rationale:

• The post-ETF approval euphoria is likely to fade, leading to a price correction.
  
• The $2.9k to $3.2k zone represents a strong support area, as evidenced by the VRVP.
  
• The weakening ADX suggests a loss of momentum in the uptrend.
  

Risk-to-Reward Ratio:

The potential risk-to-reward ratio for this trade is approximately 3:1, implying a potential 3% profit for every 1% risk.

5 thg 7, 2024

Ghi chú

Well, this took longer than expected, but we've now reached the take profit zone in ETH.