Summary
Ethereum's daily candlestick chart recently showed an upward movement with a notable upper shadow, indicating potential resistance. The pullback breached 50% of the prior rally, suggesting a consolidation phase. Key levels:
- Resistance: $240.8 (Primary), $243.27 (Secondary)
- Support: $235 (Primary), $233.3 (Secondary)
Detailed Analysis
1. Previous Trends Recap
- Bullish Signals: A preceding Doji (neutral) and Inverted Hammer (bullish reversal) candlesticks correctly forecasted yesterday’s uptrend.
- Current Concern: The upper shadow reflects selling pressure, urging cautious optimism.
2. Daily Candlestick Insights
- 50% Retracement Rule: Breaching half of the prior uptrend weakens bullish momentum, favoring sideways action unless resistance breaks.
Key Levels:
- Resistance: Yesterday’s high (~$239.74).
- Support: Previous swing low (watch $236.62 on 4H chart).
3. 4-Hour Chart Breakdown
Critical Zones:
- **$236.62**: New support after $237.5 broke.
- $239.74: Upper limit; failure to surpass may trigger downtrend.
- 60-Day MA: Price跌破 this moving average hints at capped upside—monitor $240–$242.7 for shorting opportunities.
Trading Principles
- Trend Clarity: Confirm dominant direction (up/down/sideways).
- Plan Execution: Define entry/exit points and risk-reward ratios.
- Risk Management: Allocate only capital you can afford to lose.
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FAQs
Q: What does an upper shadow candlestick mean?
A: It indicates rejection at higher prices, often signaling resistance or potential reversal after an uptrend.
Q: How reliable is the 50% retracement level?
A: A breach suggests weakening momentum, but context (volume, news) is crucial.
Q: Should I short ETH near $240?
A: Only if the 4H chart shows rejection (e.g., bearish engulfing) and with tight stop-loss orders.
Risk Disclosure: Crypto investments are volatile. Conduct independent research and consult financial advisors before decisions.
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