Analysis By Onlytradings.com

Instrument: ETHUSDT

Time Frame: 4 Hour

Exchange: Bitget

Trading Type: Swing Trading

Continuing from last time, let's take another look at Ethereum.

Ethereum is currently maintaining its trend in a very straightforward manner. Similar to using supply zones or trendlines, setting key levels based on your criteria and trading according to those levels can be highly effective in minimizing risk.

Example:
*In a downtrend:

1. If the price touches a key level, open a short position with a stop set at the point where the key level is breached.

2. If the price breaks through the key level and finds support there, open a long position with a stop set at the point where the key level retest fails (key level breach).

This approach to utilizing key levels is one of the simpler and more effective trading strategies.

Currently, Ethereum appears to be attempting a retest after breaking through the first key level (resistance). If this retest is aimed at confirming the breakout for a potential upward move, one could open a long position at this level and hold it until the next key level is reached.

However, it's crucial to note that if the price falls back below the key level and begins to act as resistance again, it's essential to be prepared to exit the position without hesitation.