ETHER - Outlook for Week Commencing 13/01/2025

Bias

The chart shows a neutral to bearish bias:

• Price is trading below the 200-period moving average (red line), indicating overall bearish pressure.
  
• There is an attempt to recover from a recent drop, but the price remains below significant resistance levels.
  
• The MACD histogram and signal lines are showing signs of a potential short-term bullish retracement.
  

Key Support and Resistance Levels

Support Levels:
$3,200–$3,250: Current support zone, where the price is consolidating.
$2,900–$3,000: Major lower support and a previous bounce area.

Resistance Levels:
$3,450–$3,500: First resistance zone near the 50-period moving average (blue line).
$3,700: Second major resistance, marking the upper consolidation zone.
$4,100: Significant long-term resistance, visible on the chart.

Trade Plan for the Coming Week

Scenario 1: Short-Term Bullish Retracement
Entry: Buy if the price breaks above $3,300 with strong bullish momentum.
Stop Loss (SL): Below $3,200 (current support).
Take Profit (TP):
TP1: $3,450 (first resistance level).
TP2: $3,700 (next major resistance).

Scenario 2: Continuation of Downtrend
Entry: Sell if the price fails to break $3,300 and breaks below $3,200 (confirmation of bearish momentum).
Stop Loss (SL): Above $3,300.
Take Profit (TP):
TP1: $3,000 (major support zone).
TP2: $2,900 (extension of bearish move).

Scenario 3: Bullish Breakout
Entry: Buy on a breakout above $3,500 with strong volume.
Stop Loss (SL): Below $3,450.
Take Profit (TP):
TP1: $3,700.
TP2: $4,100.