ETH needs way more gas to continue
ETH has been on an absolute tear over the past week or so; As seen in the price action as well as the predominant ETH/BTC pairing. At this point, ETH/BTC has hit a pretty significant resistance area. It appears the first weekly resistance identified has proven as a stop point for this tear-up on ETH. Given our principal on mean regression, we would expect ETH/BTC to reverse course to get back on track to its longer-term trend line; If we see a significant breakdown of ETH price itself (alongside negative narrative & ES direction), we could see more significant regression on HTF expectations. At this point, I'm building a very cautious short position to hedge against my current spot holdings; Stops are set very tight in case we see a breakout through the first resistance into the "Sus zone"; I'll be watching momentum on this movement as any sign of weakness may indicate a great opportunity to short with heavier size.
Alternatively, as pointed out by others, the safest trade I can see at the moment would be to trade the ETH/BTC pair directly;
Alternatively, as pointed out by others, the safest trade I can see at the moment would be to trade the ETH/BTC pair directly;
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.