Could ETH Be Nearing a Bottom with "Blood in the Streets"?ETH could be nearing a bottom. The selling has been brutal. ETH has sliced through its 200 SMA on higher time frames, i.e., the weekly chart.
In the coming days or weeks, if COINBASE:ETHUSD hits 875 approximately where the orange circle appears on the chart, the second leg of the decline will be proportional and 100% of the first leg of the decline in dollar terms.
This is a multi-month trade idea, attempting to catch a multi-month trading low in ETH. The target is shown above at 2869 , a 50% retracement of the entire decline from the November 2021 high at 4867. This is a multi-month idea.
However, do not try to catch a falling knife without a stop. A tight stop should be used to keep risk / reward acceptable and prudent. A stop could be placed at 800, or at -10%, or wherever a person's risk tolerance is.
If ETH closes below 750 where substantial support seems to lie, this trade is invalid , and the point of invalidity has been reached. This is where discipline is key for traders—knowing when to cut losses short is vital to survive. (Long-term investors who don't mind holding with a 50% loss maybe have a different approach, with fundamental crypto arguments to support their investment.)
Do your own due diligence, risk of loss is high with crypto, so understand the risks in light of your personal situation. And read the disclaimer below please.
