ETH → Ethereum Falling to $2,200!? A Prime Short Opportunity!Ethereum has reached the Resistance Zone at $2,850 and has shown the first signs of resistance. Should we enter a short?
How do we trade this? 🤔
The conditions are such that we should be looking for a short entry. We have three pushes up since the start of the last bull leg from $2,200, a strong Resistance Zone at the current price, and an RSI that is overbought at 78.00. We are in the potential short territory but need the sell signal and confirmation prior to entering a short.
Wait for the price to fall sharply and watch the candles after. It's likely we'll get a re-test of the $2,850 area before another sell bar occurs. Once that sell bar occurs, a 1:2 Risk/Reward Ratio is available to us if we enter the market at around $2,825. Set your stop loss into the Resistance Zone above the previous high and target 1:2 R/R for a take profit in the $2,350.
💡 Trade Idea 💡
Long Entry: $2,825
🟥 Stop Loss: $3,025
✅ Take Profit: $2,350
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. We have three pushes up since the start of the last bull leg from $2,200
2. Early signs of resistance at the current level
3. Strong Resistance Zone at the current level
4. Gap to the Support Zone
5. RSI is overbought at 78.00 and above the Moving Average, supporting the drop in price
💰 Trading Tip 💰
The longer a trend continues after 3 legs, the probability of that trend continuing lessens. Because of this decreased probability, we ought to reduce our risk when entering trades.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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Ethbearish
ETH → Blast to $2,500 then fall to $1,800? Reversal Time Near?Ethereum is far into its bull run from $1,100 to $2,300; with three pushes up and a Weekly RSI near the 70.00 level, and we're near a resistance level. Three initial conditions for a trend change.
How do we trade this? 🤔
These conditions are great indicators that we're near the end of the current bull trend, but we don't yet have any confirmation that we're done. We're still in the bull channel, price is above the 30EMA and we're above the Support Zone. We need a break below the Support Zone with a strong bear bar closing on or near its low and the RSI to remain below the moving average. There is a strong possibility that ETH has enough momentum left to hit $2,500, especially if Bitcoin finishes its Measured Move to $46,000 and takes the rest of the crypto market with it.
Until either scenario presents itself, we should remain on the sidelines and watch the price action unfold.
💡 Trade Ideas 💡
Short Entry: $2,080.00
🟥 Stop Loss: $2,210.00
✅ Take Profit: $1,820.00
⚖️ Risk/Reward Ratio: 1:2
🔑 Key Takeaways 🔑
1. Bull Trend, Bias to Long.
2. Price Remains Above Daily 30EMA
3. Crucial Moment on the Chart. Remain on Sidelines.
4. RSI at 56.00 and below Moving Average, Bias to Short.
5. Reasonable to Short with Confirmation below $2,200.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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ETH BEARISH Price Arrays of Value ObservationDay's Bias: Bearish
Just observing price and plotting Price Arrays of Value and identify the right entry point for a short.
Bias remains strongly bearish as DXY appears to be on an upward direction and any down move of ETH should be strong.
Additionally, price action remains leaving HTF Swing Highs while continuing to seek liquidity from lower price arrays.