FX.co ★ ETHUSD, Potential For Bearish drop | 5th July 2022

On the H4, with price expected to reverse off the stochastics indicator, we have a bearish bias that price will drop from the 1st resistance at 1177 in line with the horizontal pullback resistance and 61.8% Fibonacci retracement to the 1st support at 1087 in line with the horizontal pullback support. Alternatively, price may break 1st resistance and rise to the 2nd resistance where the 61.8% Fibonacci projection and swing high resistance is.

Trading Recommendation

Entry: 1177 Reason for Entry:Horizontal pullback resistance and 61.8% Fibonacci retracement

Take Profit: 1087

Reason for Take Profit: Horizontal pullback supportStop Loss: 1270

Reason for Stop Loss:

61.8% Fibonacci projection and swing high resistance