Hello friends and fellow traders, welcome to this idea on ETHUSD.
Looking at the weekly gives us a good idea as to how far ETH has come and where it’s planning to go. On a conservative estimate, I’d say $20K isn’t out of the question for ETH some day.
From the surface, if one just look at ETH’s correction from $1400 to $360, one may arrive to the conclusion that yes, we’ve hit support and since we’ve past the .618 retracement, we’re likely done with the second cycle, wave II, right? Possibly, but I doubt it. Typically the second wave retrace does about .382, .5, or .618 the time it took to produce the first wave. So in this case, the earliest we should expect ETH to be done with its second cycle would be near the end of the year. With the short bull run that BTC will be having, it’s not out of the question to expect a short bull run for ETH, which may be followed by several months of correction to take it down to the low 300s.
With those assumptions in mind, we do have a fairly decent trade setup as follows:
Entry: $570 - $550
Stop: $500
Target: $1100, exit half at $800 and spread the rest up to $1100
I’ll be updating this as we go and if market condition dictates, we might have to close the trade early or take less profit and let the rest ride past our original target. Please don’t forget to like or comment as it always helps to get feedback from you. As always, good luck and stay safe!
Kinashi-San
*The ideas and comments expressed herein are my personal opinions and should not be taken as financial advice. Being a trader, at any given point in time, I may or may not be holding the asset in question. This is not a recommendation to buy, sell, or hold.*
Looking at the weekly gives us a good idea as to how far ETH has come and where it’s planning to go. On a conservative estimate, I’d say $20K isn’t out of the question for ETH some day.
From the surface, if one just look at ETH’s correction from $1400 to $360, one may arrive to the conclusion that yes, we’ve hit support and since we’ve past the .618 retracement, we’re likely done with the second cycle, wave II, right? Possibly, but I doubt it. Typically the second wave retrace does about .382, .5, or .618 the time it took to produce the first wave. So in this case, the earliest we should expect ETH to be done with its second cycle would be near the end of the year. With the short bull run that BTC will be having, it’s not out of the question to expect a short bull run for ETH, which may be followed by several months of correction to take it down to the low 300s.
With those assumptions in mind, we do have a fairly decent trade setup as follows:
Entry: $570 - $550
Stop: $500
Target: $1100, exit half at $800 and spread the rest up to $1100
I’ll be updating this as we go and if market condition dictates, we might have to close the trade early or take less profit and let the rest ride past our original target. Please don’t forget to like or comment as it always helps to get feedback from you. As always, good luck and stay safe!
Kinashi-San
*The ideas and comments expressed herein are my personal opinions and should not be taken as financial advice. Being a trader, at any given point in time, I may or may not be holding the asset in question. This is not a recommendation to buy, sell, or hold.*