I had a comment /request from someone to look into analysing Ethereum. Everyone out there is scared to buy. You should be skeptical too. As a trader, I look at the technicals only to eliminate the noise. I have mentioned in previous posts, charts do not lie, pumpers do.
In order to even consider going long, make sure price breaks above the upper trendline first. There will be some resistance at around 237, so there are two scenarios:
- It hits that area and retraces back. Once I see it holds above the broken upper trendline, I am planning to go long. Small quantities at first in case it poops out. Sorry for the non-technical terms, but trading can be messy :)
- It blasts through 237. If it does, then you know you missed the trade, but it is safer to wait.
These what-ifs scenarios are one of many. IF it does not pan out the way I see it, then NO trade for me. As simple as that. The R:R is decent. Depending on what you plan to do with ETH, to me, it really needs to break above 260 in order to consider it a reversal. In the medium term, I see consolidation as it is trying to discover value. Went too high, now testing lower. Not surprising it will develop a trading range before it does turn around.
Trade your own plan, due your own diligence. Feel free to ask me questions, post comments to tell me if you disagree, or if you have any request for me to look into another coin trading pair.
Until my next post, live well.
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Thank you!
my pleasure. keep them coming (I run out of stuff to do sometimes lol)
would love your longer term perspective as well.
Sure. Looking at ETH daily chart does not make much difference than the 4-Hr chart since the bull run was so big that it pretty much looks the same, but the 4-Hr chart has more granularity (detail). Forgot to plot fibonacci levels, maybe I do that in a separate post tomorrow. But a quick view tells me that unless it first breaks above 237 today and hold above 260 in the next couple of days, there is a potential of hanging around at the bottom which is not a good sign. It can still be okay if the bottom today holds, but should not be lingering in this area. You see the cyan bubble? That means low value node in volume profile terms. It means where price did not stay for too long; it can act as both S/R, in this case is resistance. If it holds above 260, most likely it won't stay there for too long as it will look for the next higher point of control, which is the next spike higher in the chart. The spikes mean balance areas, and act as magnets. Price tends to travel toward magnet areas, the larger they are the most attractive they become as far as price agreement between buyers and sellers :) hope this helps. A bit.
https://www.tradingview.com/chart/ETHUSD/klx6bip2-Ethereum-USD-Confirming-Buy-Signal/
ETH Putting a buy tail on the daily. The link takes you to my live chart.
An update on ETH, any dip back into 230-40 area is a safe way to enter., but watching price-action to ensure confirmation is valid. Looking at going long if this happens. Trade your plan -cheers.