Trend Analysis
The main view of this trade idea is on the 2-Hour. There is a double pattern setup on the cryptocurrency Ethereum (ETH). First low was formed in June 26th 2021 around the 1700 price level. Then ETH rallied towards the middle of the W or double bottom around 2400 in early July 2021. When resistance was hit the cryptocurrency declined towards the 1700 price level around the July 20th 2021. Currently ETH is on the last leg of the W where it broke above the 2400 price level. The completion of this double bottom will take ETH towards 3200.
Technical Indicators
On the last leg of the W pattern, the price trend is being supported by the technical indicators. ETH’s price is above its short (25-SMA), medium (75-SMA) and fractal moving averages. This bullishness is compounded by the RSI testing overbought levels, in and out. Also the KST is in a positive zone.
Recommendation
The recommendation will be to go long at market. The target of the setup is around the 3200 price level. A stop loss at around 2145 will be considered a shift in the setup. This trade idea produces a risk reward ratio of 2.4
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 publishing, I have a position in ETH.
The main view of this trade idea is on the 2-Hour. There is a double pattern setup on the cryptocurrency Ethereum (ETH). First low was formed in June 26th 2021 around the 1700 price level. Then ETH rallied towards the middle of the W or double bottom around 2400 in early July 2021. When resistance was hit the cryptocurrency declined towards the 1700 price level around the July 20th 2021. Currently ETH is on the last leg of the W where it broke above the 2400 price level. The completion of this double bottom will take ETH towards 3200.
Technical Indicators
On the last leg of the W pattern, the price trend is being supported by the technical indicators. ETH’s price is above its short (25-SMA), medium (75-SMA) and fractal moving averages. This bullishness is compounded by the RSI testing overbought levels, in and out. Also the KST is in a positive zone.
Recommendation
The recommendation will be to go long at market. The target of the setup is around the 3200 price level. A stop loss at around 2145 will be considered a shift in the setup. This trade idea produces a risk reward ratio of 2.4
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 publishing, I have a position in ETH.
Trade closed: target reached:
Target Reached. Stop Loss should be moved to Break Even and monitored for a change in Trend.
