Hello Traders, here is my analysis for ETHUSD.
To start, if you follow my posts you may notice that the TA for ETH looks somewhat similar to BTC... However there is one major difference.
- BTC is currently trading within the "Parallel Channel" while ETH broke below and has yet to break above it's "Parallel Channel".
- The reason this matters is because this mean ETH will have an extra level of resistance to break through than BTC.
- We will have to keep an eye on this, aside from that the price action and TA will be similar, but it's important to take note of that.
Price Action Summary
- ETH looks short term Bullish, following BTC after the massive green daily candle yesterday. Today price is consolidating and is holding support. The probabilities favor further upside continuation in the short term.
Target Levels
- As you can see ETH has many levels of resistance to contend with, despite that ETH should still be able to make some decent gains when BTC rallies.
- Once ETH breaks above the Parallel Channel, buyer's will be more enthusiastic and ETH should reach "Take Profit #1 & Take Profit #2"
- The probabilities favor ETH reaching at least $2,300 by the end of it's rally.
- Beyond that the next levels are at $2,500 and $2,600. There is a much lower probability that ETH reaches the last 2 "Take Profit" levels.
***Enter a long below $2,000. Any higher and the risks are to high for a swing trade.
- I will be taking 1/2 profits at TP#1 and the other 1/2 at TP#2.
Invalidation
- If ETH drops and confirms below $1,700 then this swing trade setup is invalidated. If ETH confirms below $1,700 then I would expect further downside continuation beyond that point.
***Also if ETH was to drop below $1,700 that would mean BTC broke below the its "Parallel Channel" and would be highly Bearish for BTC and the majority of Crypto's would dump.
**Note on taking profits in a Bear Market**
- We are in a Bear Market... you trade a Bear and Bull market differently. In a Bull Market it might make sense to wait till "Take Profit #4" to be hit before taking profits, however in a Bear Market we know that at some point the Rally will end and price will continue lower. We have to be reasonable with our take profit levels and not get to greedy. So even if I was to think that ETH could easily hit "Take Profit #3" for example, I would still close the trade at "Take Profit #2" to lock in profits. Otherwise if you were to hold out for too long you could be in a situation where price drops sharply down and continues lower while you are still holding out in hopes that it goes back up. That is a losing mentality and will get you in trouble in trading.
Thanks everyone and best of luck trading!
To start, if you follow my posts you may notice that the TA for ETH looks somewhat similar to BTC... However there is one major difference.
- BTC is currently trading within the "Parallel Channel" while ETH broke below and has yet to break above it's "Parallel Channel".
- The reason this matters is because this mean ETH will have an extra level of resistance to break through than BTC.
- We will have to keep an eye on this, aside from that the price action and TA will be similar, but it's important to take note of that.
Price Action Summary
- ETH looks short term Bullish, following BTC after the massive green daily candle yesterday. Today price is consolidating and is holding support. The probabilities favor further upside continuation in the short term.
Target Levels
- As you can see ETH has many levels of resistance to contend with, despite that ETH should still be able to make some decent gains when BTC rallies.
- Once ETH breaks above the Parallel Channel, buyer's will be more enthusiastic and ETH should reach "Take Profit #1 & Take Profit #2"
- The probabilities favor ETH reaching at least $2,300 by the end of it's rally.
- Beyond that the next levels are at $2,500 and $2,600. There is a much lower probability that ETH reaches the last 2 "Take Profit" levels.
***Enter a long below $2,000. Any higher and the risks are to high for a swing trade.
- I will be taking 1/2 profits at TP#1 and the other 1/2 at TP#2.
Invalidation
- If ETH drops and confirms below $1,700 then this swing trade setup is invalidated. If ETH confirms below $1,700 then I would expect further downside continuation beyond that point.
***Also if ETH was to drop below $1,700 that would mean BTC broke below the its "Parallel Channel" and would be highly Bearish for BTC and the majority of Crypto's would dump.
**Note on taking profits in a Bear Market**
- We are in a Bear Market... you trade a Bear and Bull market differently. In a Bull Market it might make sense to wait till "Take Profit #4" to be hit before taking profits, however in a Bear Market we know that at some point the Rally will end and price will continue lower. We have to be reasonable with our take profit levels and not get to greedy. So even if I was to think that ETH could easily hit "Take Profit #3" for example, I would still close the trade at "Take Profit #2" to lock in profits. Otherwise if you were to hold out for too long you could be in a situation where price drops sharply down and continues lower while you are still holding out in hopes that it goes back up. That is a losing mentality and will get you in trouble in trading.
Thanks everyone and best of luck trading!
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.
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.