ETH → Mad Dash to $2,500? Or Rejected to $1,800? Let's Answer.
Updated
Ethereum is at a crucial moment in its journey to break the $2,100 resistance area. We're currently in an ascending triangle, a bullish pattern, knocking on the resistance zone door. Will it break through?
How do we trade this?
If you are not in a trade right now, do not enter one. We should not be longing resistance nor should we be shorting without a sell signal and confirmation. Wait for a break of resistance followed by a test of resistance as support to long. To short, we need a clear sell signal bar and confirmation candle closing on or near its low.
Until then, let's see where the price action goes. FOMO (Fear of Missing Out) is your worst enemy. You're making more money by not falling for the seduction of market profit.
Trade Idea
Long Entry: $2,250
Stop Loss: $2,127.50
Take Profit: $2,495
Risk/Reward Ratio: 1:2
Key Takeaways
1. Ascending Triangle, Bullish Signal!
2. Strong Support on Daily 30EMA.
3. At Resistance Zone, Do Not Long Here!
4. RSI above Moving Average and around 60.00. Bias to Long.
5. Use caution, watch for a reversal signal!
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
How do we trade this?
If you are not in a trade right now, do not enter one. We should not be longing resistance nor should we be shorting without a sell signal and confirmation. Wait for a break of resistance followed by a test of resistance as support to long. To short, we need a clear sell signal bar and confirmation candle closing on or near its low.
Until then, let's see where the price action goes. FOMO (Fear of Missing Out) is your worst enemy. You're making more money by not falling for the seduction of market profit.
Trade Idea
Long Entry: $2,250
Stop Loss: $2,127.50
Take Profit: $2,495
Risk/Reward Ratio: 1:2
Key Takeaways
1. Ascending Triangle, Bullish Signal!
2. Strong Support on Daily 30EMA.
3. At Resistance Zone, Do Not Long Here!
4. RSI above Moving Average and around 60.00. Bias to Long.
5. Use caution, watch for a reversal signal!
You are solely responsible for your trades, trade at your own risk!
If you found this analysis helpful, click the Boost button and let us know what you think in the comment section below!
Note
As predicted, the price broke out of the Resistance Zone, bounced off of it and confirmed support (our signal to long!), then had a slightly higher high and rocketed upward!
There are two straight-forward ways this trade could have been played:
1. Sell half of your position at 1:1 Risk/Reward ($2,375), move your stop loss up to entry, then swing the rest to 1:3 Risk/Reward at $2,620 or until a reversal signal.
2. Hold the entire position until 1:2 Risk/Reward at $2,495 before the next Resistance Zone.
The first option secures profits, but risks the larger reward never coming to pass because you have to break the next resistance to get it. The second option risks not making any money at all because if your take profit is never hit and the price reverses, you lose money. Each trader has their own strategy and both methods *can* work. I prefer to secure profits at 1:1 and move my stop up when the conditions are right. It maximally clears your mind because you now have secured profits AND the remainder is truly "I don't care" money, allowing you to better focus on the charts and not on the dollars.
More updates to come as they unfold!
-Joe Dean
Trader Engineering Course
**Available Now at TraderEngineering.com**
Trader Engineering Course
**Available Now at TraderEngineering.com**
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