ETH → Ethereum Reversal? This Trade Setup Takes Advantage.Ethereum has shown great signs of bull strength as Bitcoin and the crypto market burn hot into this bull run. The time for entering longs on the higher timeframes has likely come to an end. So is it time to short?
How do we trade this? 🤔
ETH does not have any sell signals yet, but we did just break into a major resistance area at $2,500. With four pushes up, Bitcoin near a strong resistance area as well ($46,000-$48,000), it's reasonable to start looking for counter-trend trades. I believe there is a short opportunity just below $2,500 down to the Daily 30EMA or the previous Support Zone.
To justify this trade, we need a strong sell signal in the current price range around $2,600. Once the $2,500 price area is broken, a potential test of that area should once again fail and give us a confirmation bar closing on or near its low. At this time, It will be reasonable to short scalp ETH at a 1:1 Risk/Reward Ratio.
💡 Trade Idea 💡
Short Entry: $2,500
🟥 Stop Loss: $2,740
✅ Take Profit: $2,300
⚖️ Risk/Reward Ratio: 1:1
🔑 Key Takeaways 🔑
1. Four Pushes up from Breakout.
2. Entered Major Resistance Level.
3. Short Resistance Level with Proper Bear Signal.
4. RSI at 70.00 and above Moving Average, Supports Short.
5. Watch Bitcoins Response to Current Price Area.
💰 Trading Tip 💰
Never enter a counter-trend trade without the proper signal *and* confirmation. A signal bar will usually have a long wick, and a confirmation bar will follow shortly after the signal bar and have a strong body closing on or near its low or high (bear or bull).
⚠️ 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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