ETH - Good Potential To Go High Locally
Hello everyone
As I have demonstrated in the chart we have a inverse H&S formed in 1H timeframe and ETH have since broke the neck line and retested it and right now it seems like its going to bounce from it. There are local minor resistant levels up ahead (yellow horizontal lines) that ETH can at least rise to them and test them and if it can hold above the last one it can head for higher levels.
The point is that we should be cautious and monitor BTC closely cause if BTC falls then this idea invalidates, but if BTC manages to hold its current level or head higher, the chances for ETH is good enough to head high and in fact it can rise higher in percentage compared to BTC. So it has better reward potential but that may come with a bit more risk.
So for my strategy for scalping this move is that I will open long position at this point with my stop loss below the last swing low. That gives me 1 to 5 RR. A more conservative approach is that to open long position once ETH breaks above the first yellow line with volume coming in simultaneously. And I will keep close eye on BTC movement as it has the strengths to invalidate this buy setup idea.
Have fun and trade safe.
As I have demonstrated in the chart we have a inverse H&S formed in 1H timeframe and ETH have since broke the neck line and retested it and right now it seems like its going to bounce from it. There are local minor resistant levels up ahead (yellow horizontal lines) that ETH can at least rise to them and test them and if it can hold above the last one it can head for higher levels.
The point is that we should be cautious and monitor BTC closely cause if BTC falls then this idea invalidates, but if BTC manages to hold its current level or head higher, the chances for ETH is good enough to head high and in fact it can rise higher in percentage compared to BTC. So it has better reward potential but that may come with a bit more risk.
So for my strategy for scalping this move is that I will open long position at this point with my stop loss below the last swing low. That gives me 1 to 5 RR. A more conservative approach is that to open long position once ETH breaks above the first yellow line with volume coming in simultaneously. And I will keep close eye on BTC movement as it has the strengths to invalidate this buy setup idea.
Have fun and trade safe.
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