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ETHUSDT Perpetual Contract
Long

ETH Long after USDC Fud

By R4h3l
Updated
  • ETH under pressure due to USDC issuer Circle’s banking partners’ issues.
  • ETH found support at $1,420, coinciding with HTF support and 200-day MA.
  • Bounce from this level could signal reversal of downtrend and continuation of bullish momentum.
  • Invalidation point below $1,400, target at $1,744, representing a ~7R trade.
  • The first area of resistance is at $1,500 (midpoint of the range).


ETH Long after USDC Fud

Ethereum (ETH) has been under pressure lately due to the uncertainty surrounding the USDC stablecoin issuer Circle and its banking partners. Circle held a significant portion of its USDC reserves at Silicon Valley Bank (SVB) and Silvergate Bank, both of which faced regulatory issues and insolvency fears in the past week . This led many investors to lose confidence in USDC and sell it at a discount for other stablecoins or cryptocurrencies.

However, ETH may have found a strong support level at around $1,450, which coincides with my weekly high time frame (HTF) support. Which also aligns with the 200-day moving average (MA). A bounce from this level could signal a reversal of the downtrend and a continuation of the bullish momentum for ETH, at minimum for the short term.

The invalidation point for this idea is below $1,400, which would break the 200-day MA and create a new low. This could open the door for further downside towards $1200 or lower. The (ambitious) target for this idea is $1,744, which is the previous high reached in February. This would represent a ~7R trade.
Note
I locked in 25% of my profits and adjusted my stops to break even. The funding rate remains negative, implying more room to run, but I'm playing it safe, avoiding a full round trip.
Note
The price surge was likely driven by a combination of short squeeze and Binance's massive 1B USD bid on cryptocurrencies. This could be a good exit point to secure profits, as the potential upside of 4% may not justify the risk of reversal. I will hold for now and monitor the lower time frame for signs of weakness. Usually, such moves do not offer a re-entry opportunity until they are over.
Trade closed manually
Closed at 1764.65$ for ~7.7R (a little bit less because of the first 25% profit taken).
Support and Resistance
R4h3l

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