【$ETH Signal】1H strong breakout followed by high-level consolidation, retracement for secondary rally

$ETH The 1H timeframe experienced a massive bullish candle (over 6% gain) breakout and is now in a narrow range consolidation at high levels, with prices oscillating between $2055 and $2065. The 4H timeframe has confirmed a breakout above the previous consolidation zone’s upper boundary, indicating a bullish trend, but the short-term RSI(1H) is as high as 75.95, suggesting a retracement is needed. Open interest remains stable, and buy orders are accumulating around $2055, showing that the main force is defending the price. This is a typical “breakout - consolidation - second breakout” pattern, and a retracement presents an opportunity.

🎯 Direction: Long (Long)

🎯 Entry/Order: $2048 - $2052 ( Reason: 1H EMA20 support zone + massive bullish candle retracement level )

🛑 Stop Loss: $2030 ( Reason: Break below the start of the 1H massive bullish candle, invalidating the breakout structure )

🚀 Target 1: $2080 ( Reason: Previous high resistance zone, also near 4H EMA50 )

🚀 Target 2: $2120 ( Reason: 1.618 Fibonacci extension based on the height of the breakout bullish candle )

🛡️ Trading Management:

- Position size suggestion: Standard position (Reason: 4H and 1H trend resonance, but short-term overbought, strict stop-loss needed )

- Execution strategy: After reaching Target 1 at $2080, reduce position by 50%, and move the remaining position’s stop-loss up to the entry price of $2052. If the price cannot hold above $2080 and falls back, exit all positions.

Depth logic: Over the past 4 hours, the price surged from $1950 to $2073 with a volume spike, a clear signal of main capital entering. Although the current 1H RSI is overbought, the price refuses to dip sharply, forming a dense buy wall above $2055 (as shown by order book depth), indicating strength. The 4H chart has formed a bullish engulfing pattern, confirming a trend reversal. Negative funding rates eliminate the risk of long squeeze. The core strategy is to seize the first technical retracement after a strong breakout and play for the second wave of rally.

Trade here 👇 $ETH

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