Jack's Trading Room | ETHUSD Ethereum Buy Condition Met After Pullback

Earlier, mainstream coins experienced a significant drop, today we are focusing on the trend of Ethereum.

Earlier, there was a general decline in mainstream cryptocurrencies. Today, we are focusing on the trend of Ethereum.

Currently, we can see the four-hour candlestick chart of ETHUSD. Within the Ethereum chart, before the significant downturn, a small cycle top pattern - double top pattern was formed at the top as indicated by the black rectangle in the chart.

Subsequently, it dropped to around the support level near the previous cup and handle formation's cup rim high at 1949.0, forming a low point at 1944.85 for a rebound. This decline coincidentally retraced to the support moving average channel formed by EMA144 and 169, utilizing the VEGA tunnel trading method shared in the past.

Given that the EMA12 filtering line fails to cross below the EMA144 and 169 channel, closing above EMA12 is considered a buy condition, with the entry point set at 2270.40 and the stop-loss point set at the previous low of 1944.85.

As mentioned in previous articles, the bullish target above 2600 remains valid, with the overall trend still within a large upward channel. For those entering into Ethereum long positions based on the above trade, it is advisable to wait for a pullback in the future or determine the take-profit point based on the risk-reward ratio.

Recently, the digital currency market has experienced significant volatility. It is recommended that operators strictly adhere to risk control measures and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article reflects personal opinions; readers are advised to exercise caution and virtual currency trading may involve risks to your capital.

WeChat Official Account: Jack's Trading Classroom

Official Telegram Channel: https://t.me/JackCryptoRoom