ETHUSDT Daily Long Setups
Trade Logic:
- Setup: Long positions distributed across 3 key daily Fair Value Gaps (FVGs) as part of a DCA strategy.
- Entry Zones:
1. First FVG near $3,660, offering a moderate discount.
2. Second FVG near $3,212, aligning with deeper retracement and higher confluence.
3. Third FVG near $2,877, close to major demand and psychological support.
- Risk-Reward: Each entry maintains a minimum RRR of 1:3, targeting the weak high near $4,200.
Confluence Factors:
- Trend: Strong bullish trend intact, with price respecting the Kijun line and daily BOS (Break of Structure).
- Liquidity Sweep: Potential to trap shorts at lower FVGs, fueling a rally.
- Support Levels: Each FVG aligns with strong historical demand zones, providing high-probability entries.
Macro Context:
- Market Sentiment: Ethereum fundamentals remain strong, with increasing on-chain activity and sustained demand for staking.
- Correlations: Broader crypto market shows bullish sentiment, with BTC leading the trend.
- Economic Indicators: Risk-on environment as equity markets rally, supporting further upside in risk assets like ETH.
Execution Plan:
- DCA across all three entries for optimal risk management and exposure.
- Trail stops as price approaches $4,200 or weak high levels for partial profit-taking.
- Monitor macroeconomic news and potential resistance above $4,200 to adjust targets.