FX.co ★ ETHUSD Potential For Bearish Drop | 4th January 2023

Looking at the H4 chart, my overall bias for ETHUSD is bearish due to the current price crossing below the Ichimoku cloud, indicating a bearish market. If this bearish momentum continues, expect price to head towards the 1st support at 1074.23, where the previous swing low is. In an alternative scenario, price could head back up to break the 1st resistance at 1231.62, where the 50% Fibonacci line is, before heading towards the 2nd resistance at 1308.21, where the 38.2% Fibonacci line is.

Trading Recommendation

Entry: 1231.62

Reason for Entry: Retest 1st resistance line

Take Profit:1074.23

Reason for Take Profit: Previous swing low and 1st support line

Stop Loss: 1308.21

Reason for Stop Loss:

2nd resistance line