Ethereum - Don't Enter A LONG Before You Read ThisIn this technical analysis I will describe how we can use TA to decide on a trade set-up on Ethereum. I will go over some of the main zones and show how you can enter.
I tried to make the chart as self explanatory as possible, but here is a quick summary.
First of all it's really fascinating to look at the to resistance zone. Ethereum hasn't traded near the $600 level in years. Now we can see that even after 2.5 years the horizontal resistance level from June 2018 still held value!! The price bounced EXACTLY at that level. This is just pure magic if you ask me and shows the power of TA. Horizontal zones can have high predictive power.
The question now on ETH/USD is how to enter. We see that the price already has seen an increase of 12 percent from the most recent support zone. Also, we can see that there is still another 11 percent left before it reaches the long term horizontal resistance.
I believe that the risk reward is not very interesting right now to enter a trade if you weren't in already. I suggest to trade according either of the following two options.
First of all you can wait for the price to reach the long term resistance zone and bet on a reversal. You can enter with a short at around $610 and take profit at around $500 again.
The second option is to wait for a bit of a retracement to at least the $520 region and only then enter with your long position so you still have the possibility to enjoy the entire ride up while limiting your downside potential.
- Trading-Guru
