ETHUSD: Support Zone In Play. Waiting For Reversal Formation.
ETHUSD update: As the BTC market retraces, the alts follow as usual. This market and Litecoin are now both in very interesting areas for possible swing trade and inventory ideas. The key is to wait for a sign of stability which is absent at the moment.
It seems like BTC is in free fall. From 7600 to the mid 6K's in one day can feel a little dramatic. As long as 6K holds, it is nothing more than a shake out. And as weak hands are being shaken out of BTC, they are also being shaken in the alts like this market.
Remember, as a price action trader, I do not care why. I only care about what is more likely to happen next and at current levels, a bullish reversal is much more probable.
544 to 464 is the .618 of the recent bullish structure measured from the 374 low. Overlapping the lower level of the area is the 458 reversal zone boundary. IF a bullish reversal can establish itself within this area, a swing trade long idea would be in order. At S.C. that is the area we are monitoring closely for our followers.
IF price keeps pushing lower which is also very possible and no reversal appears, we simply do nothing. Eventually stability will return and we can then continue our evaluation from there.
There are still two significant bearish structures in place. The trend line and the 625 level which I wrote about extensively on S.C. and on here in recent articles. As long as these structures are in play, it is unreasonable to expect any serious bullish action over the long term at this point.
If a swing trade idea develops, it will have a conservative target to compensate for the limited short term bullish potential.
Overall, as long as this market stays above 374, then this price action is just a normal corrective move. At S.C. we will be watching carefully for a broader higher low formation as well. You can follow along while most of our articles are freely available.
It seems like BTC is in free fall. From 7600 to the mid 6K's in one day can feel a little dramatic. As long as 6K holds, it is nothing more than a shake out. And as weak hands are being shaken out of BTC, they are also being shaken in the alts like this market.
Remember, as a price action trader, I do not care why. I only care about what is more likely to happen next and at current levels, a bullish reversal is much more probable.
544 to 464 is the .618 of the recent bullish structure measured from the 374 low. Overlapping the lower level of the area is the 458 reversal zone boundary. IF a bullish reversal can establish itself within this area, a swing trade long idea would be in order. At S.C. that is the area we are monitoring closely for our followers.
IF price keeps pushing lower which is also very possible and no reversal appears, we simply do nothing. Eventually stability will return and we can then continue our evaluation from there.
There are still two significant bearish structures in place. The trend line and the 625 level which I wrote about extensively on S.C. and on here in recent articles. As long as these structures are in play, it is unreasonable to expect any serious bullish action over the long term at this point.
If a swing trade idea develops, it will have a conservative target to compensate for the limited short term bullish potential.
Overall, as long as this market stays above 374, then this price action is just a normal corrective move. At S.C. we will be watching carefully for a broader higher low formation as well. You can follow along while most of our articles are freely available.
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Free Signal Every Week: bit.ly/signalwk
My discord community: bit.ly/inviteme2
Trade Bybit: bit.ly/bybreg
Trade Mexc: bit.ly/usmexc
I posted an update on this market for those following me on S.C. And in a few hours I will publish another report here on BTC. No matter what these charts say, BTC dictates where they go next.