ETH the sleeping giant.
Updated
Is this the moment we’ve all been waiting for? Is the crypto spring back?
We’ll have to wait a bit for a few more confirmations before we get that answer, but things are starting to look bright and one thing is certain: something is about to happen pretty soon!
We chose ETH for a technical analysis instead of the almighty Bitcoin because in terms of structure it is a bit clearer. Bitcoin broke the previous higher-high already and ETH is slowly following in its footsteps. Another good reason for this choice is that, compared to BTC atm, ETH could give you a better price change (%) and therefore a better risk-to-reward ratio.
Now let’s delve into a few factors that we have to wait for in order to get a sniper entry on ETH:
1. Yearly/Monthly Uptrend.
Even with this monthly pullback that occurred lately, we are still above the highs of 2018, but we all know that when traders see a bit of red on their screens they start to panic and FUD. Don’t forget that the only friend you have trading the financial market is the trend. Never trade against it and make it your enemy and this applies to the crypto space as well.
2. The financial system is evolving.
We live in an era in which it looks like everything around us is evolving from a tech POV. Will the classic financial system survive this change? As much as many financial boomers would like to think that this is not the case, they might be wrong, and this evolution will definitely have a snowball effect on the financial system as well, making a switch from the classical one to (hopefully) a more decentralized and faster-to-process environment.
3. Big institutions are stacking their pockets with crypto.
Don’t want to be a conspiracy theorist here, but how many times the big boys raise their voice through media that crypto is worthless, it won’t last and all that jazz, but at the same time guess who are the biggest whales in the space? My point exactly.
4. Technical analysis.
Let’s get back to what matters most at this moment in time and that is the chart.
The price has been ranging for more than a year now, and it decided to create a mini range again for the past 3 months represented by the magenta rectangle on the chart. This created loads of uncertainty and raised the anxiety levels of all the chads out there, but as we all know, patience is a virtue. As an overall trading advice, we recommend staying away from any trades when the price is ranging, because it could create a lot of damage to your account and better to wait for a breakout to occur outside the range if you want to go for a trade. Even if this would damage your R:R ratio, in the end, it will have less chance of damaging your account by taking multiple trades inside a messy structure.
As you can see, the breakout occurred and we find ourselves just below an important trendline here.
What’s next?
Well, we have a few good signals on our side until now, but we have to be a bit more patient for a few things to line up as well.
The most important thing that occurred was the strong bullish impulse that created the breakout. The last lower-low created MACD divergence, which, again is a good sign.
Now we have to wait for the price to pullback a bit and reach the fair value gap area (FVG) to collect some of liquidity. If/when we get to that level, we will wait for a bullish reaction/sign and then we will engage our buy setups. As a target, I am expecting at least a new HH to occur, breaking the $2100 level, having great potential to go even further, but that’s another story, we have to take it step by step.
PS. You can check the 4H timeframe for entries.
Trade with care!
We’ll have to wait a bit for a few more confirmations before we get that answer, but things are starting to look bright and one thing is certain: something is about to happen pretty soon!
We chose ETH for a technical analysis instead of the almighty Bitcoin because in terms of structure it is a bit clearer. Bitcoin broke the previous higher-high already and ETH is slowly following in its footsteps. Another good reason for this choice is that, compared to BTC atm, ETH could give you a better price change (%) and therefore a better risk-to-reward ratio.
Now let’s delve into a few factors that we have to wait for in order to get a sniper entry on ETH:
1. Yearly/Monthly Uptrend.
Even with this monthly pullback that occurred lately, we are still above the highs of 2018, but we all know that when traders see a bit of red on their screens they start to panic and FUD. Don’t forget that the only friend you have trading the financial market is the trend. Never trade against it and make it your enemy and this applies to the crypto space as well.
2. The financial system is evolving.
We live in an era in which it looks like everything around us is evolving from a tech POV. Will the classic financial system survive this change? As much as many financial boomers would like to think that this is not the case, they might be wrong, and this evolution will definitely have a snowball effect on the financial system as well, making a switch from the classical one to (hopefully) a more decentralized and faster-to-process environment.
3. Big institutions are stacking their pockets with crypto.
Don’t want to be a conspiracy theorist here, but how many times the big boys raise their voice through media that crypto is worthless, it won’t last and all that jazz, but at the same time guess who are the biggest whales in the space? My point exactly.
4. Technical analysis.
Let’s get back to what matters most at this moment in time and that is the chart.
The price has been ranging for more than a year now, and it decided to create a mini range again for the past 3 months represented by the magenta rectangle on the chart. This created loads of uncertainty and raised the anxiety levels of all the chads out there, but as we all know, patience is a virtue. As an overall trading advice, we recommend staying away from any trades when the price is ranging, because it could create a lot of damage to your account and better to wait for a breakout to occur outside the range if you want to go for a trade. Even if this would damage your R:R ratio, in the end, it will have less chance of damaging your account by taking multiple trades inside a messy structure.
As you can see, the breakout occurred and we find ourselves just below an important trendline here.
What’s next?
Well, we have a few good signals on our side until now, but we have to be a bit more patient for a few things to line up as well.
The most important thing that occurred was the strong bullish impulse that created the breakout. The last lower-low created MACD divergence, which, again is a good sign.
Now we have to wait for the price to pullback a bit and reach the fair value gap area (FVG) to collect some of liquidity. If/when we get to that level, we will wait for a bullish reaction/sign and then we will engage our buy setups. As a target, I am expecting at least a new HH to occur, breaking the $2100 level, having great potential to go even further, but that’s another story, we have to take it step by step.
PS. You can check the 4H timeframe for entries.
Trade with care!
Comment
Consolidation looking pretty healthy on the 4H timeframe, but a bit more patience is required before we go up.Comment
Hope all of you got in the buys!Comment
Target reached: the $2100 level reached as the price spiked up with yesterday's news regarding BlackRock's registration of Ethereum ETF. More bullish momentum to follow so time your entries carefully and use proper risk manangement. Every pullback is a buy atm. Comment
If you missed the first trade you got a chance to catch the second impulse after the correction is over. You can see the similarities below:
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.