ETHUSD: Buyers Are Back. Looking for Longs Low 260s Support.
Updated
ETHUSD Update: The reversal played out from the major support area in the lower 240s that I highlighted in my previous evaluation. It just didn't play out as the "double bottom" formation that I was anticipating. The buying that I was waiting for is back. Price compromised the pivot resistance area which is a clear sign of strength and a signal that price is in line with the bigger picture, which has been bullish all along. Recalling the concept of support/resistance inversion, the 262 area (old resistance) should now act as a significant support. That level also overlaps with the .382 retracement of the current swing. As long as 262 to 264 support holds, I expect prices to continue higher. I have not gotten long, and do not like buying highs, even in a strong market.
I plan to wait for price to retrace back into the 264 to 260 area and look for reversal patterns on smaller time frames to get long. My risk will be measured from just below our current support which is 260. Also another support to measure risk from is the 254 area. The conservative target for this trade is 288, and the more aggressive target is 302. Assuming an average entry price of 262, my RR theoretically is around 8:1 for T1 and 14:1 for T2. Yeah these numbers might seem a little outrageous, but that's the wonderful world of ethereum for you. The time frame for these targets is within the next 24 to 48 hours. If price does not pull back, then I will wait for the next retrace opportunity.
We are currently sitting under the 273 resistance which was previously an important support, so a retrace from here is reasonable to expect. My bullish scenario will be negated if price goes below 243. That would be a sign of significant weakness returning to the market. Let's see what happens.
I plan to wait for price to retrace back into the 264 to 260 area and look for reversal patterns on smaller time frames to get long. My risk will be measured from just below our current support which is 260. Also another support to measure risk from is the 254 area. The conservative target for this trade is 288, and the more aggressive target is 302. Assuming an average entry price of 262, my RR theoretically is around 8:1 for T1 and 14:1 for T2. Yeah these numbers might seem a little outrageous, but that's the wonderful world of ethereum for you. The time frame for these targets is within the next 24 to 48 hours. If price does not pull back, then I will wait for the next retrace opportunity.
We are currently sitting under the 273 resistance which was previously an important support, so a retrace from here is reasonable to expect. My bullish scenario will be negated if price goes below 243. That would be a sign of significant weakness returning to the market. Let's see what happens.
Note
My retrace scenario is not in effect. Price is nearing my anticipated targets. I will wait for next retrace and evaluate from there.Trade active
Long at 270.66 with a stop at 261.30. RR is 2:1 for T1, and about 4:1 on T2. Let's see what happens.
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