So ETH finally got it's first *real* bounce since the dumpening of it. It managed to retrace around 30% back up before finding some real resistance.
It's having trouble breaking ~220USD and there's a few signs to be cautious of.
1. Volume on the rejection candle. This could be a sign of absorption of buyers or just heavy selling
2. divergence on the obv and rsi, it shows weakness on the 2nd move up.
3. lower high until proven otherwise
I have a pending order at 218usd but I wouldn't want to open a short right now as the R/R is simply not worth it.
IF we do get a 3rd rejection (which is why I would short) I'll try a short with a stoploss just above the local high.
This is a dead cat bounce until proven otherwise, will be looking at 260 and 300 as key levels.
It's having trouble breaking ~220USD and there's a few signs to be cautious of.
1. Volume on the rejection candle. This could be a sign of absorption of buyers or just heavy selling
2. divergence on the obv and rsi, it shows weakness on the 2nd move up.
3. lower high until proven otherwise
I have a pending order at 218usd but I wouldn't want to open a short right now as the R/R is simply not worth it.
IF we do get a 3rd rejection (which is why I would short) I'll try a short with a stoploss just above the local high.
This is a dead cat bounce until proven otherwise, will be looking at 260 and 300 as key levels.
Comment:
Welp. I never took the trade anymore but my stop would've been hit (a bit too tight imo) and I wasn't patient enough for the new high to form/for eth to dump. Also busy with uni so that plays a small role as well I think. My original bias of this being a dead cat bounce was right though I think