ETH Stop Loss Strategy Analysis in the Breakout from the Triangle Pattern

According to the latest data, Ethereum (ETH) is currently priced at $2.05K, with a 24-hour decline of -0.46%. Technical analysis shows that ETH is in a correction phase, having broken below the lower boundary of the triangle pattern and also falling below the support level discussed yesterday. At this critical moment, establishing a clear stop-loss strategy is essential to protect traders’ capital.

Breakout Point and Support Level of the Triangle Pattern

The current price has broken below the lower boundary of the triangle, which is an important technical signal. Based on pattern analysis, support is concentrated in the 1860-1840 range, which is a key level for determining the next trend. If the price can stabilize in this area, it will lay the foundation for a rebound. Setting a stop-loss below 1840 is necessary; once the price closes below this support, it confirms bearish pressure. Traders should immediately exit to control risk.

Stop-Loss Management for Long Positions

For bullish traders, there are two main options. The first is to establish a long position near 1860, targeting the range of 2000-2050-2100, with a stop-loss set below the 1840 close. The second is to partially open a position around 1910, with the target still at the key support level of 1860, requiring a stricter stop-loss. Additionally, there is a more aggressive option to open a long position near 1750, but the stop-loss should also be set below this level if the price closes below it. In any case, the stop-loss is the baseline for risk management.

Stop-Loss Settings and Risk Control for Short Positions

For bearish positions, traders can consider shorting locally or from the current price, but the stop-loss must be set at the point where the price re-enters the triangle pattern and closes, effectively limiting the risk of an upward breakout. Another approach is to operate within the 1990-2040 range, with the stop-loss set above the triangle’s upper boundary close. More aggressive short traders may target the 2100-2150 range, but the associated risk with stop-loss is higher.

Balancing Target Prices and Risk Management

Regardless of the trading strategy, setting a reasonable stop-loss is key to avoiding significant losses. The 1860 support level is a point of intersection between bullish and bearish forces; the direction of the breakout will determine the subsequent trend. Traders should establish their stop-loss levels before entering positions, rather than setting them passively afterward. Remember, stop-loss is not only a risk management tool but also a reflection of trading discipline. During periods of increased market volatility, strictly executing the stop-loss plan will directly impact the final trading outcome.