4H ETHUSD - short-term drawback before continuing bull trend
Updated
Zooming in on my prior chart and building off the idea I published earlier:
ETHUSD has been printing both lower highs and lower lows over the past 3-4 hours, looks like we are falling back to support in the 1900-2000 USD range. Price was at approximatley 2095 when I started typing this, dropped straight down to 2070 almost instantly (and back up to 2082 at the time of publishing). Embrace the volatility?
I opened a short at $2095, setting stop loss at 2100 given the precipitous downward drop, hope to take profits around 1940-2000, then look to open a long again once the drop establishes its new support, assuming continued downward price movement today as the market corrects and looks for its new support level, now that we have broken above 200 USD.
Assuming we find support at or above 1900-1940, I expect a continuation of the bullish trend up to the 2300-2400 area of resistance, with further upside expected with a break through of that resistance (or a retrace to support around 2100 if it the price rejects at resistance in the 2300-2400 range).
P.S.: I like to set the RSI to a longer time horizon than the bollinger bands and volume indicators, which I failed to do before publishing this chart. 4H RSI (chart) is very oversold -- daily RSI appears to have entered oversold territory with this break above 2000 USD (weekly RSI is not very helpful). So, all told, I do think a short-term correction is imminent/in progress, will retest prior support in the 1900s, before a likely continuation of the bull-trend
ETHUSD has been printing both lower highs and lower lows over the past 3-4 hours, looks like we are falling back to support in the 1900-2000 USD range. Price was at approximatley 2095 when I started typing this, dropped straight down to 2070 almost instantly (and back up to 2082 at the time of publishing). Embrace the volatility?
I opened a short at $2095, setting stop loss at 2100 given the precipitous downward drop, hope to take profits around 1940-2000, then look to open a long again once the drop establishes its new support, assuming continued downward price movement today as the market corrects and looks for its new support level, now that we have broken above 200 USD.
Assuming we find support at or above 1900-1940, I expect a continuation of the bullish trend up to the 2300-2400 area of resistance, with further upside expected with a break through of that resistance (or a retrace to support around 2100 if it the price rejects at resistance in the 2300-2400 range).
P.S.: I like to set the RSI to a longer time horizon than the bollinger bands and volume indicators, which I failed to do before publishing this chart. 4H RSI (chart) is very oversold -- daily RSI appears to have entered oversold territory with this break above 2000 USD (weekly RSI is not very helpful). So, all told, I do think a short-term correction is imminent/in progress, will retest prior support in the 1900s, before a likely continuation of the bull-trend
Note
updating stop loss to 2083 (current price is 2060) so I can ensure some kind of profits and go back to doing my actual job and stop staring at this chart.Note
2083 "stop loss" triggered on my short, made a little bit of a profit -- that was a rather aggressive bounce up from 2078 to 2087 just now (approximately 18:13 UTC) , should be interesting to see where price goes from here. I'll most likely wait things out for the next few hours to see where the price goes from here, everything above 2000 and below 2128 (roughly the "top" during this break above 2000) seems like no-man land to me, no idea what to expect from the price at this point. That said, the end point of this push back towards 2100 seems relevant -- a definitive and sustained break above 2115 seems bullish in the short-term, but more likely I expect a local top over the next few hours somewhere below the previous high of 2128, which might be a good entry point for a short similar to that noted in the original post
Note
looks like current resistance levels are at approximately (prices are in USD): potentially as low as 1580? (1W 200EMA) - will probably be sitting out until we find new support if anything significantly below 1831 comes into play.
1831 (floor, 50 day EMA, plz hold, will wait and see if we lose this support)
1847 (1H 30EMA) (flirting with this at time of writing, dropping precipitously after losing. womp.)
1855 (1H 50EMA) - 1881 (1H 100EMA) - 1919 (1H 200EMA)
If price holds above 1847, I think local bottom will be in -- but honestly, who knows.
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