Ethereum
Long

ETH/USDT – Daily Chart Technical Analysis

249
Date: 18th May, 2025
Prepared by: Musarrat

Ethereum is currently undergoing a retracement phase after a strong bullish rally. A Fibonacci retracement tool has been applied from the recent low around $1,577 to the swing high of $2,742.75 to identify key levels of potential reversal.

Key Technical Levels:
Fibonacci Retracement Zones:

0.236: $2,572.75 (minor resistance)

0.382: $2,467.66

0.5: $2,382.99 (current price nearing this zone)

0.618: $2,298.71 (strong retracement zone)

0.786: $2,176.73

Buy Limit Order:

Entry Price: $2,415
Positioned between the 0.5 and 0.618 retracement levels—an optimal buy zone based on historical retracement behavior.

Stop Loss: $2,174
Placed just below the 0.786 retracement level to allow room for price fluctuation while protecting downside risk.

Take Profit Targets:

TP1: $2,732 – Near the previous swing high and a key resistance level.

TP2: $3,210 – A projected extension level, marking a strong bullish continuation if the uptrend resumes.

Indicator Analysis:
RSI (14): Currently at 61.05, indicating bullish momentum still holds, but approaching neutral territory. A bounce from current levels would confirm strength.

Conclusion:
The chart suggests a healthy retracement within an uptrend. A buy limit at $2,415 offers an opportunity to enter the market at value, targeting a rebound toward previous highs and beyond. The setup is supported by:

Retracement to golden ratio zones (0.5–0.618)

Strong RSI trend above 60

Clear stop-loss and reward levels offering favorable risk-to-reward ratio

Strategy:
Wait for price to trigger the Buy Limit at $2,415. If filled, monitor for price action confirmation and manage trade towards TP1 and TP2.

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