ETHEREUM/DOLLAR: ETHUSD Next Trade Points from Here
Three waves down and a bear flag/pennant sitting above a potential bull flag at the bottom of the run. The low was off the longer term dynamic support line too. Eth is trying to turn here but is depending on Bitcoin to help it break free of the downtrend from here. As things stand it's a speculative buy on dips back to 516 with a stop below 510 and becomes a stronger buy for swing traders only once 562 has been re- taken and held by the bulls in this argument. It should then attract more buyers and rally to 630-635. A good near term trade if we see it materialise, and probably needing Bitcoin to break above 8600 and hold for it to happen.
Returning to the downside from here, ETH must continue to hold at 516 on dips - any failure to do so by more than 5 points will tip it back into bear hands again and force it lower to 481 at least, and more likely to revisit lows at 452-450 again where it will stand a good chance of double bottoming before the next rally attempt resumes.
Comment
ETHUSD Update Wednesday Beginning to rally on back of Bitcoin and up 10% or so since yesterday's call, so still outperforming Bitcoin on both downside and upside and still the most elegant way of playing Bitcoin's own swings to create some extra Apha without having to gear up or margin trade if you don't want to.
For now, raise the stop to just under 560 for a small profit if hit - or can close out half and let the rest run with stop still under 560. It has to push above 590 now to attract more buyers still, which should take it back to 630 where look to close out - and maybe think about reversing short once the dynamic underpinning the rally is broken with stops above the same line by 10 or so points. Until then ETH is positive, though still very dependent on Bitcoin.
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