Ethereum Break out or Bull trap???

in #ethereum7 years ago

Today Ethereum just break out the strong resistant trend (Bear market) that was holding it for the past weeks. I would recommend to keep a very tight stop loss after $300. This break out may be a fake one (Bull trap).

My 2 recommendations:

A- Bullish case: start selling around 300 to 320. Around those prices is going to pull back. If the falling price does not break trough the new up trend (support trend) buy the dip. We may see the formation of an ascending triangle. Possible profits taking around $650.00 (Based on 161.8 Fibonacci extension).

B- Bear Market continuation: Around 300 to 320 short the market with a very close stop loss special when the pull back begins to get closer to the new support trend. If the price break out the support trend that will mean that we possible were in a bubble. So, very strong support around $40.

I really hope is going to be the Bullish case... But be very very very carefull!

I am new in this community if you like this analysis let me know, so I will for sure keep doing it. My strategy is Bollinger, Elliot, CCI, Chart Patterns and Supports and Resistant.

Gus

https://www.tradingview.com/x/PISJuOnL/
market_cycle.jpg

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