My belief is that the price of Ethereum will go down as low as 1690 over the next week or so. Many traders will share this belief and will place short orders. It is likely that these traders will set their liquidation points above 1837 or even 1847. The market maker knows exactly where each and every liquidation point is and will not drop the price without hitting them.
The market makers have been moving price sideways for over a week now so we have to be patient and wait for them to make their move. The Hong Kong open is the next opportunity but the New York open might be the most likely. Either way, we are watching for an aggressive move higher. I would expect they will do it in 3 green candles on the 15 minute timeframe but the liquidity hunt could last as long as three hourly candles.
Pay close attention towards the end of the third green candle where they will paint a full candle and stall price to entice FOMO traders to go long. If you are bold and confident then this where you will take profits from your longs and go short. If you prefer to be a little more cautious, wait for the snapback before going short and once you are sure there has been a reversal, take profits from your longs.
The market makers have been moving price sideways for over a week now so we have to be patient and wait for them to make their move. The Hong Kong open is the next opportunity but the New York open might be the most likely. Either way, we are watching for an aggressive move higher. I would expect they will do it in 3 green candles on the 15 minute timeframe but the liquidity hunt could last as long as three hourly candles.
Pay close attention towards the end of the third green candle where they will paint a full candle and stall price to entice FOMO traders to go long. If you are bold and confident then this where you will take profits from your longs and go short. If you prefer to be a little more cautious, wait for the snapback before going short and once you are sure there has been a reversal, take profits from your longs.
Comment:
The stop hunt ended up taking 3 hourly candles and we got the wick we were looking for. I hope you were able to get a good entry short and that price will drop quite a lot over the coming days. See you at 1690 ;-)
Trade closed: target reached
Remember the goal of this move is not only to hit the short liquidation points it is also to trap traders long. Watch out for that big wick to the upside.