ETH → Gearing Up for $10,000!? Or $1,200? Let's Answer.Ethereum finally fell into my buy zone this past week and I was able to buy with an average price of $2,185.18. This is a target I've been watching for months in anticipation. The best part is that it may go lower!
How do we trade this? 🤔
ETH has landed on a key support area of $2,100 and is now flirting with falling to the .236 Fib level at $1,800. A final target would be around $1,500 which brings us back into the bear market range. ETH formed a triple top over the course of 2024 and as expected, it pulled back hard with the alt market.
Bitcoin Dominance has been in a bull trend since the last cycle and hasn't shown any signs of weakness yet. Currently at 62%, it could jump up to 70% easily. Until it drops, ETH and the alts are going to remain bleeding out.
I'm targeting the previous all-time high for a first profit target, around $4,800. Whether I take profits at that level depends on the price action leading up to it. If we get a strong push with strong candle closes leading up to that price, I'll likely hang on. Otherwise, I may take 25% of my position off the table and look for a potential re-entry.
Final target price is $6,750, just below the 1.618 Fib level. This level also corresponds with a measured move target if the price attempts $4,000, pulls back to the 3-Year Support, then moves up again. I believe $10,000 ETH is absolutely possible for this run, but given how slumpy the alt market is, I don't see that probability being as high as the previous high of $7,000. This is why I'm taking my profits before that 1.618 Fib level is hit.
💡 Trade Idea 💡
Long Entry: $2,185.18
🟥 Stop Loss: $700
✅ Take Profit #1: $4,800
✅ Take Profit #2: $6,750
⚖️ Risk/Reward Ratio: 1:3
🔑 Key Takeaways 🔑
1. 2024 Triple top led to a retrace down to the 2023 range.
2. First buy at $2,185.18, potential buy at $1,800 and $1,500
3. Stop loss at $700 below the 2022 bear market low
4. Holding the position until the previous all-time high around $4,850 where the first take profit waits. $6,750 is the second take profit just before the 1.618 fib level
5. Weekly RSI is near 34.00 and below the Moving Average. This is a good level to buy.
💰 Trading Tip 💰
Ascending Wedges signal an increased probability of a bear breakout. Combined with three pushes up in a bull trend and strong sell bars (candles with large wicks on their tops), creates conditions where a counter-trend trade is reasonable.
⚠️ Risk Warning! ⚠️
Past performance is not necessarily indicative of future results. You are solely responsible for your trades. Trade at your own risk!
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