Hello Traders,
The chart is telling me Ethereum ETH has just broken its previous all time high and is currently in price discovery mode inside a bullish Elliot Wave 3 with a target of $43000.
Sounds absolutely mental but looks totally "normal"
Will update as this progresses.
The chart is telling me Ethereum ETH has just broken its previous all time high and is currently in price discovery mode inside a bullish Elliot Wave 3 with a target of $43000.
Sounds absolutely mental but looks totally "normal"
Will update as this progresses.
Note
Note
This chart is stupidly bullish. Note
Hello Traders, lets have a talk about the "probability's" of what can happen here and how the price could behave at this level. We will also discuss leverage here and why using leverage (responsibly) seems like a good idea (to me anyway). Here are 3 possible scenarios that could happen here. Note
Scenario A - Price continues to move higher. 90% Probability.Note
Scenario B - Price retraces to test ATH level and bounces with conviction. 60% Probability. This would be a great 2nd buy opportunity and price bouncing from this level after testing is extremely bullish. Note
Scenario C - Price retraces to ATH level, does not bounce and falls below and closes below previous ATH level. 10% probability. This would look extremely bearish. Note
Lets have a look at risk/leverage and probability/chance.A. I think its a 90% probability the price will continue to move up from here.
B. I also think its a 60% probability for the price to drop 20% and test the previous ATH level as support.
C. I think its a 10% probability that the price will fall below and close below the previous ATH level.(bearish). Pretty sure we have covered all scenarios here.
Note
Now that we know this information lets "assume" for the "purposes of this demonstration" you bought 2 ETH anywhere between $100 - $1000 for a long hodl. Well done you are in profit. Lets think about using your 2 ETH as collateral and using the exchange leverage facility's "sensibly" to make some more gains. As of today the Binance USDT daily lending rate is 0.16% per day which seems higher than normal to me but either way that's 1.12% interest per week on the loan or 58.4% per year, the rate is subject to change hourly. 58.4% interest per year on a loan is expensive and you could probably borrow the money cheaper elsewhere. I do not expect to hold a long leverage position for a year, more likely is between 1 and 3 months. I am getting to my point now, 1 sec.Note
Right OK, almost got bored explaining this but here is the basic plan. Transfer "x" amount of ETH from spot to margin. Slowly open a 2 x leverage position here, sit back and hodl the ride for a few months, sell for profit. Have a stop loss in place, price breaking the ATH level with conviction is unacceptable and the trade should be closed if this happens. This seems like the most simple and logical plan here which I am explaining very simply at noob level. Note
I have suggested 2 x leverage because that's reasonable. Too much leverage with no risk management can destroy a trader. Too much leverage is stressful and can lead to bad panic decisions. Depending on the exchange platform you use and your trading experience/risk tolerance, you could slowly scale in a leverage long position over the next few weeks, putting stops in place above your entries as you go to protect your open positions.Anyway let me know your thoughts.
Note
ETH price is moving up and has already beaten the 2 month interest rate on the loan. Note
Looks like death here, so much for breaking ATH and continuing up. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.