09.02.202412:44 Forex Analysis & Reviews: Technical Analysis of ETH/USD for February 9, 2024

ETH Surges Beyond Supply Zone, Eyes $2.5k

Key Takeaways:

1. Moving Averages: DEMA 50 and EMA 100 above, indicating medium-term bullish sentiment.
2. Price Action: Consistent higher lows and highs signal an ongoing uptrend.
3. RSI: Overbought at 75.96, suggesting potential short-term correction or consolidation.

Technical Market Overview:

Ethereum (ETH/USD) surged to $2,465, breaching the supply zone post Double Top pattern invalidation on the H4 chart. $2,390 and $2,445 now serve as critical support levels, with strong H4 momentum favoring short-term bulls, albeit amidst extreme overbought conditions.

Resistance Levels:

Blue arrow-marked levels highlight resistance targets, notably below $2,500, potentially acting as a psychological barrier.

Intraday 1H Indicator Signals:

• 22 Buy signals, 1 Sell signal among 23 technical indicators.
• All 18 moving averages show Buy signals.

Sentiment Scoreboard: Bullish sentiment dominates at 74%, with a recent uptick indicating continued optimism.

Weekly Pivot Points:

Identify potential reversals, support, and resistance:

• WR3: $2,414
• WR2: $2,358
• WR1: $2,337
• Weekly Pivot: $2,301
• WS1: $2,281
• WS2: $2,245
• WS3: $2,204

Bullish Scenario:

• Continued Trend: Sustained bullish momentum above moving averages targets sub-$2,500 resistance.
• Breakout Confirmation: Above resistance, increased volume may signal further upside towards all-time highs.
• RSI Consolidation: Cooling RSI without significant price drops could affirm current levels, potentially prompting further gains.

Bearish Scenario:

• RSI Pullback: Overbought RSI may precede a price retreat, finding support at DEMA 50 or EMA 100.
• Resistance Failure: Inability to breach immediate resistance, coupled with reversal patterns, hints at downside momentum.
• Trendline Break: Violation of ascending trendline suggests potential bearish reversal.

Conclusion:

ETH/USD presents bullish indicators, yet caution is warranted due to overbought RSI levels. Traders should monitor RSI corrections and resistance levels to assess trend strength. Risk management and market news awareness remain crucial.

Useful Links

• More Artcles
• InstaSpot Course for Beginners
• Open Trading Account

Important Notice

The begginers in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.

Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focues and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.

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