Hello traders,
Here we have ETH/USD on the 2H chart.
ETH/USD has been trading the downside considerably after a peak ignited a considerable correction of the 16th January. The correction on ETH/USD ended the next day at the support zone at 760 on the 17th January.
Price has broken out of the downtrend. Price has been having higher highs since the retest on the support on 17th January. The side-wards resistance seen above has been keeping price contained since 14th January, and I expect price to continue doing so with this new move also.
I am expecting Ethereum to begin a continuation up move. There is also a chance it could test swing low first.
This trade could play out in 2 ways, I have outlined them below:
-Price successfully confirms a rounded bottom at current levels and goes to the upside impulsively, hitting the upper side-wards resistance line at 1220.
-Price retests the lower swing low at 960, confirms it as a support, and then later confirms a double bottom. After this an up move will ensue and we will get an impulse leg to the side-wards resistance target at 1220.
Bare in mind, that a retest of the lower support may indicate slightly more weakness than the first scenario, and this makes the extended target zone level at 1400 level much less likely.
Also bare in mind if price hits the resistance line target and then retests, this will make it less likely that the extension target zone at 1400 less likely.
I will updating this analysis if it receives more than 40 likes.
Here we have ETH/USD on the 2H chart.
ETH/USD has been trading the downside considerably after a peak ignited a considerable correction of the 16th January. The correction on ETH/USD ended the next day at the support zone at 760 on the 17th January.
Price has broken out of the downtrend. Price has been having higher highs since the retest on the support on 17th January. The side-wards resistance seen above has been keeping price contained since 14th January, and I expect price to continue doing so with this new move also.
I am expecting Ethereum to begin a continuation up move. There is also a chance it could test swing low first.
This trade could play out in 2 ways, I have outlined them below:
-Price successfully confirms a rounded bottom at current levels and goes to the upside impulsively, hitting the upper side-wards resistance line at 1220.
-Price retests the lower swing low at 960, confirms it as a support, and then later confirms a double bottom. After this an up move will ensue and we will get an impulse leg to the side-wards resistance target at 1220.
Bare in mind, that a retest of the lower support may indicate slightly more weakness than the first scenario, and this makes the extended target zone level at 1400 level much less likely.
Also bare in mind if price hits the resistance line target and then retests, this will make it less likely that the extension target zone at 1400 less likely.
I will updating this analysis if it receives more than 40 likes.
Comment:
Anyone who got this trade, I recommend closing out the full position. It looks like we will get some downside correction, and I do not see the point in riding it.
