• Ethereum price hits new 2022 lows. 
  • Bulls have regained nearly all of today’s losses, only to give up those gains for a deeper loss.
  • Powerful and rare bullish entry opportunity on the Point and Figure chart. 

Ethereum price action, like the rest of the cryptocurrency market, has faced renewed and accelerated selling pressure. After losing 13% at one point during the Wednesday session, buyers poured in and have pushed ETH, close to the open before promptly selling off again.

Ethereum price developing two powerful bullish entry setups

Ethereum price on the $50/3-box reversal chart is poised for an explosive breakout very soon. The hypothetical long entry is a buy stop order at $2,550, a stop loss at $2,400, and a profit target at $3,000. 

The setup is based on two patterns in Point and Figure analysis: a Triple-Top Breakout and a Bearish Fakeout. The most powerful of the two is the Bearish Fakeout - which is a form of a bear trap as it entices bears on the sidelines to attempt a short at the bottom of a move. 

It is possible that an even more desirable pattern, the Bullish Catapult, could develop after the entry is hit. To confirm a Bullish Catapult setup, traders will want to look for a double-top to form between $2,550 and $2,650. 

ETH/USD $50/3-box Reversal Point and Figure Chart

The Ethereum price long trade setup represents a 3 to 1 reward for the risk, with an implied profit target of 18% above the entry. A trailing stop of two to three boxes would help protect against any profit made post entry. 

The hypothetical long trade is invalidated if Ethereum price moves to $2,000 before the entry is triggered. In that scenario, ETH is likely on the path to $1,800 and then $1,500 shortly after. 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

LUNA 2.0 price is primed for 60% rally

LUNA 2.0 price is primed for 60% rally

LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect. The ongoing retracement hints at a 60% upswing to $3.50.

More Terra news

How trade SafeMoon price for a quick profit?

How trade SafeMoon price for a quick profit?

SafeMoon price gets ready for a quick run-up amid a bearish challenge. As a result, SAFEMOON has been consolidating below a crucial resistance barrier. Investors can expect the altcoin to resume its run-up soon.

More SafeMoon news

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price edges near a critical level, is the uptrend genuine?

ApeCoin price shows compression of two Simple Moving Averages as price consolidates. APE price shows bullish re-entrance on the Volume Profile pattern, but traders should steer away from being early buyers. Invalidation of the bear trend remains at $6.15.

More ApeCoin news

Cardano Price Prediction: Can the release of Node 1.35 trigger a 40% rally

Cardano Price Prediction: Can the release of Node 1.35 trigger a 40% rally

Cardano price seems to be preparing for massive gains as Vasil hard fork takes one step closer to becoming a reality. In a recent Twitter thread, IOHK, the developers behind Cardano announced the launch of Cardano node 1.35.0 on June 25.

More Cardano news

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis

BTC

ETH

XRP