ETHUSD: No Retrace? No Trade. Waiting For Better Setups.ETHUSD update: Indecisive price action around a potential lower high formation. Since price has not taken out the 625 resistance level, I have no choice but to expect more from the bear side.
As I wrote in my ETH article on S.C. earlier today, 625 is the .382 area of the current bearish structure. As long as price stays below this level, it is more likely to consolidate or test lower prices.
Long term, I am bullish on this market as well as the other major coins. It is at times like this when it is important to also recognize the short term price action since it is very helpful for staying out of trouble.
Based on the current structure, there is no reason to do anything at these levels. I am not going to add to any long term inventory, or take any short term trades. Like I wrote earlier, there is no advantage to taking any risk at these levels. I do not short these markets, so I can only consider risk from the long side.
At S.C., we are waiting to see IF these markets choose to retest the lows. The high probability level for us is the low 500's into the 471 reversal zone boundary. Remember, we do not know if price will retest this area, but we are prepared if the opportunity materializes. We don't predict, we play probabilities.
In summary, quiet times in the market are great times to prepare. Research other coins, check out our portfolios at S.C. and see how we are building inventory. When the market offers more attractive prices, we are prepared with a plan. What is your plan?
