$ETH$: Bearish on the 1hr 🐻 (but bullish on the weekly 🐂)

What happened: $ETH$ has entered a range-bound period [1,510 - 1,658] since Jan. 18, meaning bulls have been struggling to push it higher for at least 10 days. On the 1hr chart, there have been two “lower-high” formations formed since Jan. 29 20:00 UTC. RSI, on the other hand, has only just returned from the oversold area a couple of hours ago, meaning the relative strength is still weak.

What will happen: As a good rule of thumb, always follow the micro-trend when trading on the hourly charts. The latest momentum implies a 3rd leg down is plausible but not definitive. However, RSI is awaiting an imminent trendline breakout followed by another one not too far off, which means this is pretty risky. But looking at the PL ratio [3.93-to-1], this is a pretty good bet.

The Swing Play: 12-48 Hours
3.93-to-1 Profit-to-Loss Ratio.
Entry: 1,566; Target: 1,512; SL: 1,580.

Hourly Resistance Zones

1. 1565.30 - 1569.97
2. 1579.43 - 1580.64
3. 1595.14 - 1603.75

Hourly Support Zones

1. 1556.06 - 1546.93
2. 1546.18 - 1538.38
3. 1535.92 - 1532.90

TA Methodologies:

1. Supply & Demand Theories
2. Price Momentum
3. Fibonacci Retracements & Extensions SR Zones
4. Trendline Breakout
5. RSI Movement Strengths