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【$ETH Signal】Correction and Buy! Confirm the pullback on the hourly chart, support trend line on the 4-hour chart to bet on rebound

$ETH The price is oscillating within a critical support zone on the hourly timeframe (1970-1975), where initial support was established at the pullback along the ascending trend line on the 4-hour chart and EMA50 on the hourly (1970.38). The RSI indicator on the hourly (48.97) is approaching neutrality, not entering the oversold zone, indicating that the strength of the correction remains manageable. On the 4-hour timeframe, although the price faced resistance around 1994 and retreated, the overall structure remains within the last rebound channel, and the volume of open positions (OI) is stable, with no signs of panic selling. The current price is a breakout point in a battle between sellers and buyers; if the price breaks support downward, it will turn into a downtrend, and if it holds above the upper level, the uptrend will resume.

🎯Trend: Buy (Long )

🎯Entry/Pending Orders: 1972.5 - 1975.0 (Reason: EMA50 support on the hourly + synchronization of the ascending trend line on the 4-hour chart )

🛑Stop Loss: 1965.0 (Reason: Break of the trend line on the 4-hour chart and the previous low at 1967.03, structure breakdown )

🚀Target 1: 1988.0 (Reason: Higher resistance on the hourly chart and pressure zone of EMA20 )

🚀Target 2: 1998.0 (Reason: Above the 4-hour high at 1994.59 and Fibonacci retracement level 1.272 )

🛡Trade Management:

- Position size suggestion: Light position (Reason: Price testing a critical support level, confirmation needed )

- Execution strategy: After the price stabilizes above 1978, it can be considered an initial confirmation, and a slight increase in position size can be considered. Upon reaching Target 1, reduce 50% of the position, and move the stop loss to the entry level ( to protect capital ). The remaining position aims for Target 2.

Deep logic: Market depth shows that the sell order at (1972.55) has a large volume of (170.26 ETH ), forming a short-term resistance with thin walls. When these orders are consumed, it may trigger stop-losses of sellers, causing the price to rise rapidly. The buy-to-sell ratio on the hourly timeframe hovers around 0.5, indicating a relatively balanced state between sellers and buyers, awaiting trend confirmation. On the 4-hour timeframe, a long candle with an upper shadow at 1994 appears, but it was not accompanied by a significant decrease in open interest (OI), suggesting that the main force may have been just a liquidation rather than a genuine sell-off. Considering ATR at 24.84, the stop loss distance is reasonable, and the risk-reward ratio > 1.5, fitting short-term trading conditions.

Live Market Quote 👇 $ETH

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