ETHUSD-Impressive run on the 2 hour chart! Can it last?
Updated
ETH has been on a nice run since the trend changed directions on 4/8. Looking at the entry opportunity, a 1% percent risk model would have allowed 20% of available capital to be allocated towards the trade. Based on that, the current trade would have put about 15% to the bottom line.
Will the current uptrend last?
Obviously, a trend can continue for much longer then people expect, but ETH is now entering the meat of its daily overhead resistance, a trading band that appears to be fairly wide (675-800). With ETH sitting slightly above 700, it's not entirely unreasonable to think that it could go as high as 800 from here. With a move that started around 400, that would be a pretty good pay day!
Key points to watch
As the trade continues to unfold, I did want to point out that a cluster of top markers (orange crosses) are developing again. This is generally a sign that the underlying investment is ready to rest or correct. The top markers are a visual clue to tighten your trailing stop or possibly take your money off the table. As it stands now, the tighter stop is sitting near 669.47 and the main trend stop is at 647.60. A break below the 647.60 and the trend direction changes. Best of luck!
Will the current uptrend last?
Obviously, a trend can continue for much longer then people expect, but ETH is now entering the meat of its daily overhead resistance, a trading band that appears to be fairly wide (675-800). With ETH sitting slightly above 700, it's not entirely unreasonable to think that it could go as high as 800 from here. With a move that started around 400, that would be a pretty good pay day!
Key points to watch
As the trade continues to unfold, I did want to point out that a cluster of top markers (orange crosses) are developing again. This is generally a sign that the underlying investment is ready to rest or correct. The top markers are a visual clue to tighten your trailing stop or possibly take your money off the table. As it stands now, the tighter stop is sitting near 669.47 and the main trend stop is at 647.60. A break below the 647.60 and the trend direction changes. Best of luck!
Note
Looks like the last set of top markers (orange crosses) have marked the top. ETH closed below its trailing stop and has changed trends on the 2 hour chart. It was good run on the 2 hour chart, but now it's the time to let the pattern redevelop.
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