ETH/USD Daily Chart: Ready for a Breakout

Oct 14

Ethereum’s price action on the daily timeframe is showing signs of a potential breakout. As indicated on the chart, I have added a second position to this trade. Unlike my typical strategy, I will not take partials on this trade—I plan to close one full position instead.


Technical Analysis:
• Retracement to Key Fibonacci Levels: On the weekly timeframe, Ethereum retraced to the 0.6 Fibonacci level, a strong support zone that has shown a significant bullish rejection. This deep retracement hints at potential strength, setting the stage for an upward move.
• Resistance Zone at 2.5K: If ETH manages to break and close decisively above the 2.5K mark, it could confirm a healthy bullish continuation, signaling a possible retest of the upper ranges around 2.8K-2.9K. However, if the price stalls, we may be entering a range trading scenario, fluctuating between 2.1K and 2.9K. In this case, I’ll close both positions around 2.8K-2.9K, depending on how price reacts to those levels.
• Trendline Break: The daily chart shows that ETH is attempting to break a descending trendline. A confirmed break above this trendline would add more weight to the bullish case and indicate that ETH is gaining momentum.

Risk Management:
• I’ve set the stop-loss slightly below key support zones, minimizing downside risk if the market turns. As always, managing risk is the key factor. Should the price dip below the critical areas of support, I will consider closing both positions to limit losses.

Fundamental Insights:
1. Monochrome’s Ethereum ETF Launch: Monochrome has launched the first Ethereum ETF (IETH) on Cboe Australia today, adding a significant bullish catalyst to Ethereum’s price action. With in-kind Ether redemption and subscriptions, this ETF offers better tax efficiency for institutional investors, potentially increasing demand for ETH.
2. Institutional Activity: There’s a notable accumulation of ETH by institutional players. A wallet linked to Longling Capital recently added another 5,000 ETH (12.34M) to its balance, pushing its total holdings to 68,064 ETH (168M). This kind of movement underscores strong confidence in Ethereum’s price trajectory. With institutional players coming back into the market after the liquidation event in 2022, we are seeing a resurgence of interest in Ethereum, especially as it holds above the 2.5K mark.
3. Ethereum Price Action: Ethereum is gaining momentum, climbing over 3% today and trading above $2,500, aligning well with the overall rally in the crypto market. This rally is also supported by Bitcoin’s strength, as it trades near $65,000, further bolstering the sentiment in the crypto space.

Market Sentiment & Conclusion:
Despite some slowdown in institutional demand for crypto ETFs in the U.S., Ethereum’s price action and the recent ETF launch in Australia add positive momentum to this setup. If Ethereum continues to hold above 2.5K and follows through with a breakout, the next target will be around 2.8K-2.9K. If the breakout stalls and range trading ensues, I’ll close my positions accordingly.
ETH traders should keep an eye on price action around 2.5K. The key takeaway is that even in uncertain market conditions, sticking to a well-defined plan, like the one outlined here, helps ensure proper risk management while seizing potential opportunities.

Let’s continue to monitor how this plays out!

Note: Please remember to adjust this trade idea according to your individual trading conditions, including position size, broker-specific price variations, and any relevant external factors. Every trader’s situation is unique, so it’s crucial to tailor your approach to your own risk tolerance and market environment.

Oct 21

Trade active

The trade has reached the 2.8k price zone, and as anticipated, there was an immediate reaction. This level is highly sensitive due to a cluster of large orders that have been filled. Moving forward, it is critical to monitor whether the 2.5k–2.6k zone holds, as maintaining this range is key for a continuation of the bullish trend. That said, we may see manipulation on both sides, which could result in sharp moves in either direction. Stay alert and manage risk accordingly!

Oct 24

Trade active

ETH held up well after the retrace and has maintained its bullish structure without breaking any key levels. It will be interesting to observe how the market reacts moving forward from this point. Staying attentive to the upcoming price action will provide better clarity on whether we can expect a continuation of the bullish trend.

Oct 29

Trade active

As noted in the previous update, the structure remains intact, showing a strong bullish rejection. Now, the key focus is on whether Ethereum has the momentum to close the daily candle above the critical $2,800 price area. This level could be significant in confirming the continuation of the bullish trend. Let’s keep an eye on how it develops from here!

7 days ago

Trade active

The price has once again rejected at the $2,700-$2,800 resistance level, but the position remains active. Technically, there has been no break in structure, and the trade setup is intact. Anticipating an increase in volume and momentum starting tomorrow, which may influence further price movement.

5 days ago

Trade active

The trade remains in a range with no structural break. On the higher timeframe, a bearish triple top formation has emerged, which suggests a possible drop toward the $2,300–$2,200 zone, or it could stabilize around $2,500. BTC dominance needs to ease for a potential upside continuation on this trade. Given the anticipated high volatility this week, I’m holding the positions as they are. Remember to reduce risk when feasible and secure profits where possible!

2 days ago

Trade active

The trade is progressing well, but it hasn’t broken through the 2,700-2,800 zone yet. This recent move to the upside appears driven by election hype, so we’ll watch to see if it sustains or if it turns into a typical “pump and dump.” For continued upside momentum, ideally, we’d see BTC dominance drop from its current level of 60.60%. For now, we’re in a ranging phase. Let’s see if these levels hold up! Pay Yourself.

yesterday

Note

We finally broke out of the range-channel with impressive momentum, and the trade is now up 20%! As we approach the 3k price range, I’ll begin taking profits and adjusting my stop loss to manage any potential selloff. Congratulations to everyone who entered this trade—remember to pay yourself!