ETH/USDT: Analyzing Price Trends and Key Levels

7 Jul 2023

Introduction:
In this technical analysis, we will delve into the ETH/USDT trading pair and explore crucial levels and patterns that can assist traders in making informed decisions. We will focus on the selling area at 1920 and 1940, anticipate a potential correction towards 1800, and analyze the significance of an inside bar formation within the selling area.

1. Selling Area at 1920 and 1940:
ETH/USDT has encountered strong resistance at the price levels of 1920 and 1940. These levels have proven to be significant barriers in the recent price action, suggesting a higher probability of a downward price movement.
We observe the formation of an inside bar within the selling area of 1920 and 1940. This formation reinforces the notion of a potential price reversal, as it indicates a period of consolidation and indecision among market participants

2. Expected Price Correction towards 1800:
Considering the strong resistance mentioned above, we anticipate a price correction in the ETH/USDT pair.
In this case, we expect the price to retreat towards the support level around 1800. This level has historically demonstrated a strong buying interest, making it a potential target for long positions or profit-taking for short trades.

Conclusion:
By analyzing the ETH/USDT trading pair, we have identified a significant selling area at 1920 and 1940, suggesting potential short opportunities. Furthermore, we anticipate a price correction towards the support level of 1800.