📈EGLD Analysis: The Impact of Ethereum ETF on the Market💥
🔍Let's dive into today's analysis. Yesterday, the Ethereum ETF news was confirmed, but since it was already priced in, the market didn't rally. Instead, those who had bought in anticipation of an Ethereum pump started selling.
⚡️Market Momentum
Currently, there is a bearish momentum in the low wave cycle (LWC), which could extend to higher wave cycles (HWC).
⛓Coin of the Day: EGLD
Today's coin is EGLD, and the project behind it is MultiversX, a high-speed, low-fee blockchain utilizing Proof of Stake (POS). To ensure network security, you need to stake EGLD, earning annual rewards based on the transactions you validate.
📆Chart Analysis
Looking at the chart, EGLD has been in a downtrend. However, for several weeks, it has been ranging between 37.42 and 45.31. The chart shows stronger bearish momentum as the price has repeatedly failed to reach the range's upper boundary.
📊Volume Analysis
The volume supports the bearish candles, with sell volumes significantly higher than buy volumes. For opening a long position, I would wait for a reversal in volume trends, indicating that buying volume is entering the market.
📉Short Position
The nearest trigger for a short position, which we are currently reacting to, is 37.42. A break and close below this level would be a suitable trigger for shorting.
✅Short Target
The short target can be set at 31.06. However, a crucial support zone at 36.09, which once caused a false breakdown and a subsequent upward move, might cause a reversal back into the range. This zone is marked in black due to its unreliable nature.
📈Long Position
For a long position, there are three triggers to consider based on your strategy:
1️⃣38.76 Trigger: Not for the 4-hour timeframe. For this trigger, switch to lower timeframes like 15 minutes for a scalping position.
2️⃣42.62 Trigger: This logical trigger can push the price to the range's upper boundary with a suitable stop-loss in a lower timeframe, offering a good risk-to-reward ratio.
3️⃣45.31 Trigger: This is the primary long trigger, marking the range's upper boundary. A confirmed breakout above this level can target 52.25.
🪄My Strategy
Personally, for a short position, I aim to enter at the break of 37.42. For taking profits, I will monitor the market momentum and close the position once the bearish momentum ends. For a long position, I will not open a trade until significant buying volume enters the market. If appropriate volume is observed, I will use the 42.62 and 45.31 triggers to enter long positions. I avoid the 38.76 trigger, as it aligns with a reactive trading strategy that doesn't fit my approach.
📝Conclusion
In conclusion, the recent news about the Ethereum ETF has not provided the anticipated boost to the market, highlighting the importance of technical analysis in making informed trading decisions. For EGLD, the current market conditions suggest caution, especially with the prevailing bearish momentum and volume trends. Traders should closely monitor key levels and volume changes to identify optimal entry and exit points. As always, maintaining a disciplined approach and adhering to your trading strategy will be crucial in navigating the market's movements. If you enjoyed this analysis and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
🧠💼It's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2.
🫶If you enjoyed this analysis and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
⚡️Market Momentum
Currently, there is a bearish momentum in the low wave cycle (LWC), which could extend to higher wave cycles (HWC).
⛓Coin of the Day: EGLD
Today's coin is EGLD, and the project behind it is MultiversX, a high-speed, low-fee blockchain utilizing Proof of Stake (POS). To ensure network security, you need to stake EGLD, earning annual rewards based on the transactions you validate.
📆Chart Analysis
Looking at the chart, EGLD has been in a downtrend. However, for several weeks, it has been ranging between 37.42 and 45.31. The chart shows stronger bearish momentum as the price has repeatedly failed to reach the range's upper boundary.
📊Volume Analysis
The volume supports the bearish candles, with sell volumes significantly higher than buy volumes. For opening a long position, I would wait for a reversal in volume trends, indicating that buying volume is entering the market.
📉Short Position
The nearest trigger for a short position, which we are currently reacting to, is 37.42. A break and close below this level would be a suitable trigger for shorting.
✅Short Target
The short target can be set at 31.06. However, a crucial support zone at 36.09, which once caused a false breakdown and a subsequent upward move, might cause a reversal back into the range. This zone is marked in black due to its unreliable nature.
📈Long Position
For a long position, there are three triggers to consider based on your strategy:
1️⃣38.76 Trigger: Not for the 4-hour timeframe. For this trigger, switch to lower timeframes like 15 minutes for a scalping position.
2️⃣42.62 Trigger: This logical trigger can push the price to the range's upper boundary with a suitable stop-loss in a lower timeframe, offering a good risk-to-reward ratio.
3️⃣45.31 Trigger: This is the primary long trigger, marking the range's upper boundary. A confirmed breakout above this level can target 52.25.
🪄My Strategy
Personally, for a short position, I aim to enter at the break of 37.42. For taking profits, I will monitor the market momentum and close the position once the bearish momentum ends. For a long position, I will not open a trade until significant buying volume enters the market. If appropriate volume is observed, I will use the 42.62 and 45.31 triggers to enter long positions. I avoid the 38.76 trigger, as it aligns with a reactive trading strategy that doesn't fit my approach.
📝Conclusion
In conclusion, the recent news about the Ethereum ETF has not provided the anticipated boost to the market, highlighting the importance of technical analysis in making informed trading decisions. For EGLD, the current market conditions suggest caution, especially with the prevailing bearish momentum and volume trends. Traders should closely monitor key levels and volume changes to identify optimal entry and exit points. As always, maintaining a disciplined approach and adhering to your trading strategy will be crucial in navigating the market's movements. If you enjoyed this analysis and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
🧠💼It's important to acknowledge the inherent risks in futures trading, with the potential for margin calls if risk management is neglected. Always adhere to strict capital management principles and utilize stop-loss orders, ensuring that the initial target offers a risk-to-reward ratio of 2.
🫶If you enjoyed this analysis and want to support me, please boost this analysis. Feel free to leave a comment or suggest a coin you'd like me to analyze next.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.