FX.co ★ ETHUSD, Potential For Bearish Continuation | 26th May 2022

On the H4, with price recently breaking the ascending trend channel on the stochastics and moving below the ichimoku cloud, we have a bearish bias that price will drop to our 1st support at 1730 in line with the horizontal swing low support from our 1st resistance at 2124 in line with the 23.6% fibonacci retracement and horizontal swing high resistance . Alternatively, if price breaks structure, it will rise to our 2nd resistance at 2271 in line with the horizontal pullback resistance and 38.2% fibonacci retracement.

Trading Recommendation

Entry: 2124

Reason for Entry:

23.6% fibonacci retracement and horizontal swing high resistance

Take Profit: 1730

Reason for Take Profit: Horizontal swing low supportStop Loss: 2271

Reason for Stop Loss:

Horizontal pullback resistance and 38.2% fibonacci retracement