FX.co ★ ETHUSD, Potential For Bearish Drop | 31st May 2022

On the H4, with price expected to bounce off the stochastics indicator resistance, we have a bearish bias that price will drop from our 1st resistance at 2162 in line with the 23.6% Fibonacci retracement and horizontal pullback resistance level to our 1st support of 1709 in line with the horizontal swing low support. Alternatively, price may break 1st resistance and head for 2nd resistance at 2436 in line with the 38.2% Fibonacci retracement and horizontal pullback resistance.

Trading Recommendation

Entry: 2162

Reason for Entry: 23.6% Fibonacci retracement and horizontal pullback resistance

Take Profit: 1709

Reason for Take Profit: Horizontal swing low supportStop Loss: 2436

Reason for Stop Loss:

38.2% Fibonacci retracement and horizontal pullback resistance