FX.co ★ ETHUSD Potential For Bullish Momentum | 6th October 2022

On the H4 chart, ETHUSD is bearish. However, the overnight price has closed above the Ichimoku cloud, indicating that the market may soon turn bullish. The price has been consolidated along 1279.54, the first support level, for the past three weeks. Price is expected to continue rising towards the first resistance level at 1420.74, which corresponds to the previous swing low.

Trading Recommendation

Entry: 1437.69

Reason for Entry: Intersection of the 38.2% Fibonacci retracement line and the -61.8% Fibonacci expansion line

Take Profit: 1193.06

Reason for Take Profit: 161.8% Fibonacci extension line

Stop Loss: 1520.00

Reason for Stop Loss:

Slightly above the 50% Fibonacci retracement line