FX.co ★ ETHUSD Potential For Bearish Drop | 22nd August 2022

On the H4, with price breaking out of an ascending channel and moving below the ichimoku indicator, we have a bearish bias that price will drop from the 1st resistance at 1642.25 where the pullback support and 23.6% fibonacci retracement are to the 1st support at 1357.12 where the swing low support is. Alternatively, price could break 1st resistance and rise to 2nd resistance at 1792.30 where the overlap resistance, 50% fibonacci retracement and 61.8% fibonacci projection are.

Trading Recommendation

Entry: 1642.25

Reason for Entry:Pullback support and 23.6% fibonacci retracement

Take Profit: 1357.12

Reason for Take Profit: Swing low support

Stop Loss: 1792.30

Reason for Stop Loss:

Overlap resistance, 50% fibonacci retracement and 61.8% fibonacci projection