I invite you to review the ETH/USDT chart on a one-day interval. Here, using the blue lines, we will define the upward trend channel in which the price is fighting to go higher. It is worth remembering that such a positive breakout from the channel often results in a movement close to the height of the channel itself.
In such a situation, we will use the FIb Retracement tool to check potential resistance points, and we can immediately see that the price is currently fighting the first such resistance at $2,241, then we have resistance at $2,566, and interestingly, we can still see a move to the previously mentioned levels after leaving the channel upside, to a very strong resistance zone from $3,028 to $3,601.
However, when the exit level of the channel is rejected, we can see a rebound and for this purpose we will check the support areas in a similar way. Here we have a visible support zone from $1,941 to $1,742, and then we have a second zone from $1,575 to $1,410.
The CHOP indicator shows that there is still energy for a move, the RSI indicator is again approaching the upper limit with room for the price to go slightly higher, while the STOCH indicator shows a strong breach of the upper limit, which may lead to a price recovery.
In such a situation, we will use the FIb Retracement tool to check potential resistance points, and we can immediately see that the price is currently fighting the first such resistance at $2,241, then we have resistance at $2,566, and interestingly, we can still see a move to the previously mentioned levels after leaving the channel upside, to a very strong resistance zone from $3,028 to $3,601.
However, when the exit level of the channel is rejected, we can see a rebound and for this purpose we will check the support areas in a similar way. Here we have a visible support zone from $1,941 to $1,742, and then we have a second zone from $1,575 to $1,410.
The CHOP indicator shows that there is still energy for a move, the RSI indicator is again approaching the upper limit with room for the price to go slightly higher, while the STOCH indicator shows a strong breach of the upper limit, which may lead to a price recovery.