As seen on the ETH chart, after breaking the upward trend, it performs a retest on the downward trend and creates the second peak of the downtrend by taking liquidity. All the moving averages (7, 25, 50, 100, 200) have converged, reinforcing and supporting the trend.
We have 3 scenarios here:
Wait for a break of the downtrend and enter a trade with a reversal candle.
Wait for the moving averages to act as support.
Wait for support from the block order zone around the 500 level — this is the worst-case scenario.
If the first two scenarios happen together, it could push us significantly higher.
At this point, only short positions are advisable — but they must be adjusted according to risk.
Everything written here is based on the weekly chart. It is possible to trade on lower timeframes, but don’t forget — the overall trend is still down.
We have 3 scenarios here:
Wait for a break of the downtrend and enter a trade with a reversal candle.
Wait for the moving averages to act as support.
Wait for support from the block order zone around the 500 level — this is the worst-case scenario.
If the first two scenarios happen together, it could push us significantly higher.
At this point, only short positions are advisable — but they must be adjusted according to risk.
Everything written here is based on the weekly chart. It is possible to trade on lower timeframes, but don’t forget — the overall trend is still down.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.