Trend Analysis
The main view of this trade idea is on the 15-Min Chart.
There seems to be a triple bottom at around the 3650 level for the cryptocurrency Ethereum (ETH). After the third test of this support ETH rallied and hit some resistance around 4125. From there it made a higher low at around the 3700 price level. Currently ETH is trending higher from those levels, after breaking above 3910 resistance the cryptocurrency is attempting to re-test 4200 with the Awesome Oscillator (AO) and RSI corroborating this view. The AO is currently above zero and green and the RSI is above the 50 level. A change in trend would be identified if ETH falls below 3850.
The Point and Figure Chart provides an alternative perspective to ETH’s price movements. From this chart ETH is currently in a symmetrical triangle setup with the higher lows at 3770 and 3912 while the lower highs are at 4110 and 3988. At the time of publishing ETH broke above resistance. This produces a target price of 4160. Complementing this setup is the AO trading above 0 and green and the RSI being above the 50 price level.
However, on the Daily Chart, ETH is still in a corrective mode. To change this view the cryptocurrency has to break above 4412 resistance.
Recommendation
The recommendation will be to go long at market, with a stop loss at 3850 and a target of 4200. This produces a risk/reward ratio of 1.98.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to ETH.
The main view of this trade idea is on the 15-Min Chart.
There seems to be a triple bottom at around the 3650 level for the cryptocurrency Ethereum (ETH). After the third test of this support ETH rallied and hit some resistance around 4125. From there it made a higher low at around the 3700 price level. Currently ETH is trending higher from those levels, after breaking above 3910 resistance the cryptocurrency is attempting to re-test 4200 with the Awesome Oscillator (AO) and RSI corroborating this view. The AO is currently above zero and green and the RSI is above the 50 level. A change in trend would be identified if ETH falls below 3850.
Recommendation
The recommendation will be to go long at market, with a stop loss at 3850 and a target of 4200. This produces a risk/reward ratio of 1.98.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time of publishing I have exposure to ETH.
Trade closed: stop reached