Ethereum is testing strong long-term resistance confluence 2400. This is falling long-term channel resistance and a bear flag resistance. If we get a rejection and a confirmed break above this level we can call for a stronger upside reversal extension. In the case of a rejection here and another break below 2100, the Ethereum will stay at bear flag.
The Weekly Ethereum chart reveals the rising price action flag and a test of its upside resistance and an already mentioned key level of 2400. A break below 2100 is required to invalidate the immediate upside extension, and it will lead to a deeper correction. A rejection from here will lead to a new swing down to 1700 and will indicate a new possible leg lower to 1400. Until we see a cler break above 2400 we are in the downside five waves which are not yet finished.
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How to trade this?
It is a fact that a strong upside resistance for Q1 2024 is 2400. If we get a confirmed break here we could see a strong upside continuation and a test of 3000. Near-term, short-trade entries have a higher probability of success but for the conservative traders upon a break below 2100. Long trade entries are possible as well but only on a price action confirmed break above 2400. You can try a short trade here with a stop loss above 2500 and if you will be stopped out then reverse to long. For the inquiries about account management please write to [email protected].
