ETH/USD: Advanced Analysis PLUS Trading Strategy & Signals
Hi there!
Here is an advanced analysis for ETH/USD based on technical indicators and chart patterns, PLUS a ready-to-use trading strategy and a set of trading signals.
The chart you’re looking at presents the patterns of linear trend channels that best fit the price data and, importantly, indicate the trend direction and price targets.
Keep reading this analysis, and you’ll get exact instructions on how to trade ETH/USD over the next week and achieve profitability with more than an 80% success rate.
ETH/USD Analysis and Trading Strategy
The medium-term trend is STRONG UPWARD.
The uptrend had begun on Feb 8, when a significant breakup in price occurred (the first impulse wave). The price went through and above the downward trendline by 17% over 1 day - a considerable change. A similar upsurge occurred on other primary cryptocurrencies, such as BTC/USD, and clearly indicated that a short-term uptrend has begun.
Then we’ve seen an Ascending Triangle Pattern which was formed during Feb 10-16. On Feb 16, the price broke through the upper trendline of the triangle and increased by an astonishing 22.3% over the next 2 days! That action represented the second impulse wave up and confirmed the presence of an upward trend.
This basically covers the current state of the market for ETH/USD. So, what’s next?
Trading Signals
At this point, you should be looking for opportunities to open a LONG position at $140-145.
Over the next few days, when the second impulse wave up is over, there will undoubtedly be a short-term CORRECTION downwards. Technically, the Stochastic and RSI oscillators are all in an overbought area now, which implies that a short-term correction is probable. Use this correction as an opportunity to make quick short trades with close targets, and then establish a LONG position at $140-145.
The target price (the Take Profit) should be set at $160, which is the nearest strong support level. The market is expected to test the $160 support level, because whether the price will break above it or not will determine the mid-term trend for ETH/USD.
If a significant breakup above the $160 occurs, the price is expected to obtain a strong momentum and rise by a substantial amount. Therefore, we recommend establishing a long position NOW so that you would be prepared to take advantage of a strong move up if it occurs, and, hopefully, make a good return on your investment.
Otherwise, if the $160 support will not be broken, the price will undoubtedly drop through and below the current upward channel. By that time you’ll be able to close your long position with profit and reverse. The drop is projected to be significant in amount and will indicate that the uptrend is over.
Bottom line: Open LONG position at $140-145. Set a Take-Profit at $160. Keep watching the price dynamics around the $160 support level and make trading decisions, as indicated on the chart above!
An additional important aspect is that the Fibonacci Retracement CONFIRMS all of the previous two impulse waves and a corrective wave. The target price at $160 is precisely located at 100% of the Fibonacci sequence, which further confirms that $160 is a valid target price.
Trade Statistics
Here is the summary for the generated TRADE SIGNAL:
- The medium-term trend on ETH/USD is UPWARD.
- Recommended action: Enter LONG at $140 and wait for a new rally expected to take ETH/USD to a new high.
- Target (Take Profit): $160 (in 5 to 8 days).
- Forecasted P&L: +$20 or +14% (per 1 Lot)
- Stop-Loss: $135 ($-5 or -3.6%)
- Risk/Reward Ratio: 4.0x
If the price breaks through and above the $160 support - the continuation of an uptrend is expected. If that happens, the price will obtain a strong momentum and will rise by a significant amount.
Otherwise, the price will certainly drop through and below the current upward channel, and there will be excellent opportunities for short selling.
About the Author
This analysis has been prepared by Alexander Sovpel - a trader and a professional financial analyst. His approach combines the application of trend analysis with technical indicators and chart patterns, which allows making accurate predictions.
If you like this analysis and want to receive future updates - Follow Monfex on TradingView!
If you have any questions or suggestions, please write them in comments below, and I’ll respond to you promptly!
Enjoy your trading and make profits.
Here is an advanced analysis for ETH/USD based on technical indicators and chart patterns, PLUS a ready-to-use trading strategy and a set of trading signals.
The chart you’re looking at presents the patterns of linear trend channels that best fit the price data and, importantly, indicate the trend direction and price targets.
Keep reading this analysis, and you’ll get exact instructions on how to trade ETH/USD over the next week and achieve profitability with more than an 80% success rate.
ETH/USD Analysis and Trading Strategy
The medium-term trend is STRONG UPWARD.
The uptrend had begun on Feb 8, when a significant breakup in price occurred (the first impulse wave). The price went through and above the downward trendline by 17% over 1 day - a considerable change. A similar upsurge occurred on other primary cryptocurrencies, such as BTC/USD, and clearly indicated that a short-term uptrend has begun.
Then we’ve seen an Ascending Triangle Pattern which was formed during Feb 10-16. On Feb 16, the price broke through the upper trendline of the triangle and increased by an astonishing 22.3% over the next 2 days! That action represented the second impulse wave up and confirmed the presence of an upward trend.
This basically covers the current state of the market for ETH/USD. So, what’s next?
Trading Signals
At this point, you should be looking for opportunities to open a LONG position at $140-145.
Over the next few days, when the second impulse wave up is over, there will undoubtedly be a short-term CORRECTION downwards. Technically, the Stochastic and RSI oscillators are all in an overbought area now, which implies that a short-term correction is probable. Use this correction as an opportunity to make quick short trades with close targets, and then establish a LONG position at $140-145.
The target price (the Take Profit) should be set at $160, which is the nearest strong support level. The market is expected to test the $160 support level, because whether the price will break above it or not will determine the mid-term trend for ETH/USD.
If a significant breakup above the $160 occurs, the price is expected to obtain a strong momentum and rise by a substantial amount. Therefore, we recommend establishing a long position NOW so that you would be prepared to take advantage of a strong move up if it occurs, and, hopefully, make a good return on your investment.
Otherwise, if the $160 support will not be broken, the price will undoubtedly drop through and below the current upward channel. By that time you’ll be able to close your long position with profit and reverse. The drop is projected to be significant in amount and will indicate that the uptrend is over.
Bottom line: Open LONG position at $140-145. Set a Take-Profit at $160. Keep watching the price dynamics around the $160 support level and make trading decisions, as indicated on the chart above!
An additional important aspect is that the Fibonacci Retracement CONFIRMS all of the previous two impulse waves and a corrective wave. The target price at $160 is precisely located at 100% of the Fibonacci sequence, which further confirms that $160 is a valid target price.
Trade Statistics
Here is the summary for the generated TRADE SIGNAL:
- The medium-term trend on ETH/USD is UPWARD.
- Recommended action: Enter LONG at $140 and wait for a new rally expected to take ETH/USD to a new high.
- Target (Take Profit): $160 (in 5 to 8 days).
- Forecasted P&L: +$20 or +14% (per 1 Lot)
- Stop-Loss: $135 ($-5 or -3.6%)
- Risk/Reward Ratio: 4.0x
If the price breaks through and above the $160 support - the continuation of an uptrend is expected. If that happens, the price will obtain a strong momentum and will rise by a significant amount.
Otherwise, the price will certainly drop through and below the current upward channel, and there will be excellent opportunities for short selling.
About the Author
This analysis has been prepared by Alexander Sovpel - a trader and a professional financial analyst. His approach combines the application of trend analysis with technical indicators and chart patterns, which allows making accurate predictions.
If you like this analysis and want to receive future updates - Follow Monfex on TradingView!
If you have any questions or suggestions, please write them in comments below, and I’ll respond to you promptly!
Enjoy your trading and make profits.
Trade active:
Hi, guys,
What a beautiful forecast! As you can see, the price has moved exactly as forecasted.
Hope you’ve made some quick profits from selling short ETH from $150 to $140.
Now is a good opportunity to buy at $140.
According to my analysis, the price of ETH/USD is forecasted to move to $160.
Enter LONG at $140 and wait for a new rally (the third impulse wave up) expected to take ETH/USD to a new high.
$160 is the next strong support, which will undoubtedly be tested by the market.
So, set $160 as a Take-Profit.
Your P&L is forecasted to be +$20 or +14% (per 1 Lot)
Place Stop-Loss at $132.5.
Based on my experience, the probability of success in this trade is above 80%.
And the risk-reward ratio is 2.7x.
Enjoy your trading and make profits.
Alex S.
What a beautiful forecast! As you can see, the price has moved exactly as forecasted.
Hope you’ve made some quick profits from selling short ETH from $150 to $140.
Now is a good opportunity to buy at $140.
According to my analysis, the price of ETH/USD is forecasted to move to $160.
Enter LONG at $140 and wait for a new rally (the third impulse wave up) expected to take ETH/USD to a new high.
$160 is the next strong support, which will undoubtedly be tested by the market.
So, set $160 as a Take-Profit.
Your P&L is forecasted to be +$20 or +14% (per 1 Lot)
Place Stop-Loss at $132.5.
Based on my experience, the probability of success in this trade is above 80%.
And the risk-reward ratio is 2.7x.
Enjoy your trading and make profits.
Alex S.
