ETHUSD Trade Setup from Support Zone Toward $3,940

ETH/USD (Coinbase)

Timeframe: 2-hour

Current Price: ~$3,485.73

Indicators:

Red Line: Likely a short-term moving average (e.g., 20 EMA)

Blue Line: Longer-term moving average (e.g., 50 or 100 EMA)

Pattern: A pullback toward previous support after a significant rally

✅ Trade Setup Details

Entry Point: ~$3,485.34

This level aligns with prior consolidation and support zone (yellow highlighted area)

Stop Loss: ~$3,369.61

Placed below the support block to allow room for volatility

Target Point: ~$3,940.56

A retest of previous swing highs

✅ Risk/Reward

Potential Upside: ~13.96% move (approx. +$482)

Risk: About $115 per ETH

Reward/Risk Ratio: ~4:1

Favorable, as rewards significantly exceed the risk

✅ Technical Context

Price Action:

Recent downward retracement after peaking near $3,940

Testing a major support (highlighted in yellow)

If this support holds, there is potential for a reversal rally toward target

Moving Averages:

Price is near/below the red short-term moving average, signaling recent bearish momentum

A bounce from this zone could confirm a higher low formation

Key Confirmation:

Strong bullish candle or rejection wick from the support zone would strengthen the long bias

✅ Summary of the Setup
This chart outlines a long trade opportunity:

Entry near: $3,485

Stop below: $3,369

Target: ~$3,940

Rationale: Buying into a well-established support zone anticipating a rebound to retest prior highs.

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