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

On the H4, with price moving below the ichimoku indicator, we have a bearish bias that price will drop to 1st support at 1559.82 where the overlap support is. Once there is downside confirmation of price breaking 1st support, we would expect bearish momentum to carry price to 2nd support at 1419.94 where the swing low support, 61.8% fibonacci projection and 161.8% fibonacci extension. Alternatively, price could rise to 1st resistance at 1655.51 where the pullback resistance, 100% fibonacci projection and 78.6% fibonacci retracement are.

Trading Recommendation

Entry: 1559.82

Reason for Entry:Overlap support

Take Profit: 1419.94

Reason for Take Profit:Swing low support, 61.8% fibonacci projection and 161.8% fibonacci extension

Stop Loss: 1655.51

Reason for Stop Loss:

Pullback resistance, 100% fibonacci projection and 78.6% fibonacci retracement