ETHUSD Perspective And Levels: 241 Resistance Break, BTC Highs.
ETHUSD Update: 241 resistance has been taken out as BTC breaks out to new highs on rising volume. Very bullish signs which confirm further strength in this market while previous support levels are now adjusted higher.
This market has been maintaining its bullish structure all along so this higher high should not come as a surprise. As I mentioned in previous reports, the low volume was holding it back. Now that BTC has made a decisive move to new all time highs, this market is now pushing through an important resistance at 241 (.382 of recent bearish swing).
What does this mean? It means price is poised to enter the 250 to 280 resistance zone and low 300s. One observation that is not consistent with the strength is the lack of momentum. With BTC pushing new all time highs, I would think this market would be pushing the 280 level at least, so there is certainly less enthusiasm. (Maybe i'ts all the supply being dumped from the ICO scams). Whatever it is, price should have a little more push under it and the push is not there.
This market is still strong, push or no push, and I am still interested in buying for a swing trade. I do not buy highs so once again I am waiting for a retrace and buy setup at the adjusted support levels which are the 230 to 220 area (inverted resistance) and 218. As long as price stays above 218, this market should trend higher. A break below, and a possible retest of the 202 to 192 (.618 of recent upswing) is in order.
For me to get long, I need to see a retrace back to one of these areas followed by a reversal pattern. A double bottom on a 1 hour or 30 min chart, or a hammer on a 4 hour are some examples. If the retrace never materializes, then I will simply wait for a new level to present itself. Strong markets always offer minor retracements, it is just a matter of waiting for one. If I manage to get long within the 230 to 220 area, my stop will be around 210 and my first target in the mid 260s.
In summary, the push of 241 resistance signals further strength. Remember in a strong market, supports tend to hold while resistances break. Also as price pushes higher, support levels adjust upward as the new structure establishes itself. I am looking for a retracement followed by the appearance of my buy setup to get long. Keep an eye on the BTC market because that is the leader of the pack.
Comments and questions welcome.
This market has been maintaining its bullish structure all along so this higher high should not come as a surprise. As I mentioned in previous reports, the low volume was holding it back. Now that BTC has made a decisive move to new all time highs, this market is now pushing through an important resistance at 241 (.382 of recent bearish swing).
What does this mean? It means price is poised to enter the 250 to 280 resistance zone and low 300s. One observation that is not consistent with the strength is the lack of momentum. With BTC pushing new all time highs, I would think this market would be pushing the 280 level at least, so there is certainly less enthusiasm. (Maybe i'ts all the supply being dumped from the ICO scams). Whatever it is, price should have a little more push under it and the push is not there.
This market is still strong, push or no push, and I am still interested in buying for a swing trade. I do not buy highs so once again I am waiting for a retrace and buy setup at the adjusted support levels which are the 230 to 220 area (inverted resistance) and 218. As long as price stays above 218, this market should trend higher. A break below, and a possible retest of the 202 to 192 (.618 of recent upswing) is in order.
For me to get long, I need to see a retrace back to one of these areas followed by a reversal pattern. A double bottom on a 1 hour or 30 min chart, or a hammer on a 4 hour are some examples. If the retrace never materializes, then I will simply wait for a new level to present itself. Strong markets always offer minor retracements, it is just a matter of waiting for one. If I manage to get long within the 230 to 220 area, my stop will be around 210 and my first target in the mid 260s.
In summary, the push of 241 resistance signals further strength. Remember in a strong market, supports tend to hold while resistances break. Also as price pushes higher, support levels adjust upward as the new structure establishes itself. I am looking for a retracement followed by the appearance of my buy setup to get long. Keep an eye on the BTC market because that is the leader of the pack.
Comments and questions welcome.
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