"Jack's Trading Classroom: ETH Ethereum breaks through the neckline resistance of the head and shoulders bottom"

Currently, we are looking at the 4-hour candlestick chart of ETHUSD, showing a head and shoulders bottom pattern breaking out. Earlier, Ethereum broke through the trendline to form a neckline high and right shoulder, subsequently completing the head and shoulders bottom pattern.

Currently, we are looking at the four-hour candlestick chart of ETHUSD. The Ethereum chart shows a breakout of a head and shoulders bottom pattern. Earlier, Ethereum broke through the trend line to form a neckline high and a right shoulder, completing the head and shoulders bottom pattern.

A breakout above the previous neckline high of 1662.35 is considered a valid entry condition. The first bullish target is the Fibonacci resistance zone of 127.2-138.2 between 1763.23-1804.03. The second bullish target is the Fibonacci 161.8 at 1891.57, and the final target price is at the Fibonacci 200 level at 2033.25. The target price of 2033.25 overlaps with the previous high point, making it a significant resistance level. Stop-loss should be set at the right shoulder or the low point of the head, based on individual risk management.

In recent days, the cryptocurrency market has experienced significant volatility. It is recommended that traders strictly implement risk management and avoid high leverage and high contract volume trading to prevent additional losses due to volatile market conditions. This article reflects personal opinions, and readers should exercise caution when considering it. Cryptocurrency trading may pose risks to your capital.

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