ETH Is in a No Trade Zone
Updated
TLDR:
• Until ETH gets above the resistance trendline and the 21D & 50 D EMAs and retest the area as support, it is too risky to long.
• Until ETH loses the support trendline (again) and the horizontal 1680 USD support level, it is not a short either.
Background:
• Since June of 2022 ETH is in an uptrend.
• ETH has held an upward sloping support line since November 2022.
• During the past eight months, an oversold RSI reading coupled with a touch of the trendline proved to be a good long opportunity.
• We are now at the same situation as in the previous two lows:
1. Daily RSI is (was) oversold.
2. ETH touched the trendline.
3. ETH is below the 21D & 50D EMAs.
• However, this time, ETH closed a daily candle below the trendline, which IMO is a sign of weakness.
• IF ETH manages to get above resistance and make the same gains it did in previous times, it could go as high as 2700 USD (between the 1 – 1.272 fib extension).
My Trade Ideas:
1. ETH Long:
• Precondition: ETH breaches the resistance trendline and the EMAs and tests them as support. To be clear, as long as ETH is below the EMAs it is not a long IMO.
• Entry: 1815
• SL: Below the trendline, approximately 1755.
• TP: 1930, 2000, 2150, 2700.
2. ETH Short:
• Precondition: ETH loses the upward sloping trendline and the 1680 USD horizontal support level and tests them as resistance.
• Entry: Below support, approximately 1650
• SL: 1720
• Target: 1500 (Liquidity pool)
• Until ETH gets above the resistance trendline and the 21D & 50 D EMAs and retest the area as support, it is too risky to long.
• Until ETH loses the support trendline (again) and the horizontal 1680 USD support level, it is not a short either.
Background:
• Since June of 2022 ETH is in an uptrend.
• ETH has held an upward sloping support line since November 2022.
• During the past eight months, an oversold RSI reading coupled with a touch of the trendline proved to be a good long opportunity.
• We are now at the same situation as in the previous two lows:
1. Daily RSI is (was) oversold.
2. ETH touched the trendline.
3. ETH is below the 21D & 50D EMAs.
• However, this time, ETH closed a daily candle below the trendline, which IMO is a sign of weakness.
• IF ETH manages to get above resistance and make the same gains it did in previous times, it could go as high as 2700 USD (between the 1 – 1.272 fib extension).
My Trade Ideas:
1. ETH Long:
• Precondition: ETH breaches the resistance trendline and the EMAs and tests them as support. To be clear, as long as ETH is below the EMAs it is not a long IMO.
• Entry: 1815
• SL: Below the trendline, approximately 1755.
• TP: 1930, 2000, 2150, 2700.
2. ETH Short:
• Precondition: ETH loses the upward sloping trendline and the 1680 USD horizontal support level and tests them as resistance.
• Entry: Below support, approximately 1650
• SL: 1720
• Target: 1500 (Liquidity pool)
Note
consolidation is continuing. I still can't see a trade.
Related publications
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.