ETHEREUM TREND ANALYSIS- TRADE SETUP– HOW LOW CAN WE REALLY GO??
What is up Traders, hope you all are doing well where ever you are!!
In today's analysis, we will be covering the macro standpoint of ETH/UDS taking into consideration both the fundamental and technical indicators.
From yesterday’s BTC analysis we have a good idea of the fundamental situation we’ve got on our hands so if you haven’t already, go check that out!
Just as a quick recap, the coronavirus has been used as the fundamental catalyst to correct the financial markets causing extreme volatility, fear and uncertainty. The FED has stepped in and said they will do anything it takes to stabilise and control the situation on hand AKA print unlimited FIAT.
Short term this is a viable solution but due to the lockdown/quarantine around the world, the damage has already been done and will reflect in the Q2 and Q3 global financial reports which will again bring back the fear and uncertainty into the markets in conjunction with the virus as a wildcard in their back pockets, it is probable that we yet see another significant correction in the financial markets, Cryptocurrency being one of them.
Now that we have that out of the way, here are some technical points to consider:
- Symmetrical triangle formation
- MACD Crossover
- Declining volume
ETH has been trading in a long-term symmetrical triangle pattern formation, testing structural support. In conjunction with the MACD crossover on the daily timeframe, it is likely that we are headed back up to test structural resistance at the top of the triangle.
**If I were to take this trade, I would wait for some blood to get a reasonable entry using ½ my usual lot size (due to the high-risk nature) with a stop loss under the structural support and look at taking profits at the .5 and .618 and maybe leave a bit on for the .786
Would you guys be interested in taking this trade despite the situation we're in? let me know in the comments below!
Overall, due to the quantitative easing by the fed, we are likely to see a short term risk bounce in the markets but heading down later in the year we can expect all financial markets including cryptocurrency markets make new lows.
And as always, if you like what you see and this has brought value to you, make sure to hit the like and follow button as it adds value to me!
In today's analysis, we will be covering the macro standpoint of ETH/UDS taking into consideration both the fundamental and technical indicators.
From yesterday’s BTC analysis we have a good idea of the fundamental situation we’ve got on our hands so if you haven’t already, go check that out!
Just as a quick recap, the coronavirus has been used as the fundamental catalyst to correct the financial markets causing extreme volatility, fear and uncertainty. The FED has stepped in and said they will do anything it takes to stabilise and control the situation on hand AKA print unlimited FIAT.
Short term this is a viable solution but due to the lockdown/quarantine around the world, the damage has already been done and will reflect in the Q2 and Q3 global financial reports which will again bring back the fear and uncertainty into the markets in conjunction with the virus as a wildcard in their back pockets, it is probable that we yet see another significant correction in the financial markets, Cryptocurrency being one of them.
Now that we have that out of the way, here are some technical points to consider:
- Symmetrical triangle formation
- MACD Crossover
- Declining volume
ETH has been trading in a long-term symmetrical triangle pattern formation, testing structural support. In conjunction with the MACD crossover on the daily timeframe, it is likely that we are headed back up to test structural resistance at the top of the triangle.
**If I were to take this trade, I would wait for some blood to get a reasonable entry using ½ my usual lot size (due to the high-risk nature) with a stop loss under the structural support and look at taking profits at the .5 and .618 and maybe leave a bit on for the .786
Would you guys be interested in taking this trade despite the situation we're in? let me know in the comments below!
Overall, due to the quantitative easing by the fed, we are likely to see a short term risk bounce in the markets but heading down later in the year we can expect all financial markets including cryptocurrency markets make new lows.
And as always, if you like what you see and this has brought value to you, make sure to hit the like and follow button as it adds value to me!