ETHEREUM TO CONSOLIDATE ITS BULLSHello everybody, here's another ETH update after the last one followed the trend perfectly and brought more than 10% profit in just two days! So please keep supporting my ideas by LIKING as it motivates me to post more killer setups in the future. Thanks.
We are going to use the same strategy we used last time out so if you know nothing about it please read my last Ethereum trading idea. This coin could as well still be in an uptrend on broader term but its recent market behavior suggests that it looks to consolidate first on the short term. And we intend to profit on just THAT.
Observing the 4-hour chart we note textbook conditions for closing Longs and amassing Short positions. But be very careful, as crypto tends to promise roses and give thorns! Currently we have two market conditions validating taking a Short as much safer as opposed to Longs. First of, ETH has veered into overbought territory on the 4H chart. In addition to this, the candle where the RSI (Relative Strength Index) started pointing downwards after first being overbought closed at a perfect distance from our reference indicator the 120 MA (Moving Average).
What does this actually mean NOW? Ethereum could find it very difficult breaking and fixing at $230 or higher. Therefore, If one would be considering opening a short and factoring in the 3% retrace, $220-227 is the ideal range for entering this kind of trade targeting oversold conditions as the exit. While it might look to some too risky shorting Ethereum here, booking Longs that are in profit at $220 or higher certainly wouldn't be anything short of wise for a trader to do. Consolidation.
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