ETHUSD: These are the levels you need to be watching!
Hello friends!
Thanks for joining me again for our ETHUSD update. Today I will discuss the most important zones of support and resistance that we need to watch out for. Please see my previous post linked below, where I precisely discussed when the ETHUSD pullback was coming and where we might land.
In this post, I highlight to you the areas you should keep an eye on if you want to enter a trade. I believe if you were in a long from $425-$40 (as I recommended in my first post) you should have closed that a long time again, and if you were in a short from the $503 (as I recommended in my second post), you should have taken profits already. Now we are in a no trade zone. I know that putting "No trade zone" on your chart doesn't get you many likes on trading view, but let's be rational here (and SMASH that like button anyway). We are between a key resistance and a key support area right now.
I believe we are headed up to the resistance area , which has shown itself to be between $480 - $484. So why have I drawn mine going up to $489? Because that is where the 0.5 fib retracement area is of this recent pullback, and where our prior high is. We must respect these levels.
The support zone has previously shown itself to play a key role in resisting and supporting the price. Additionally, that is where the 0.618 fib retracement level is for this whole bull move form $425. As I mentioned in my last post (see below), the bearish Gartley harmonic pattern gives you a second target in the 0.618 area (and further down but let's not talk about that until we break $450). Therefore I think this is a reasonable place to put buy / take profit orders.
However, we have formed a head and shoulders pattern on the 4hr (blue brush strokes on the chart). If we go down to the $450 area, please don't get sentimental and hold on to your longs. The target for the H&S is roughly the $425 area. Below that we are looking at taking out the $360 low. If you do buy in the support zone , PLEASE STICK TO YOU STOP LOSS or you'll be left holding the bag like a man in a discount store waiting for his wife to finish shopping. Don't be that man.
Now, in the short term I am expecting a bounce to our resistance zone (yellow arrows on the chart). However, ETH has proven itself to be incredibly weak when compared to BTC. Therefore, if BTC corrects further to the downside, don't expect a bounce from ETH. This is why I have labeled the area between $480 and $460 as a NO TRADE ZONE. You will get chopped up in this zone and become very frustrated. It's not worth it.
Look either way you cut it, this is not a good look for the ETH bulls (of which I am one). I have been calling for $540 since we were in the $420s on 7-12. But we must acknowledge this bearish development. If you are looking for something to trade, hold off on ETH for the (short) time being, in my humble opinion. ETH needs to discover itself and decide if it wants to join BTC's "ETF-to-the-moon" trend or just be another flailing alt-coin. Don't assume one way or the other- let the market tell you the direction. These are what the red and green dashed arrows indicate. This is the decision ETH has to make.
Now if you enjoyed this work, then please give me a like! Also, please check out my earlier posts and give me a follow on twitter (@im_calmly). I'm new to positing on Trading View, but I update often, so please be sure to give me a follow. Cheers!
Thanks for joining me again for our ETHUSD update. Today I will discuss the most important zones of support and resistance that we need to watch out for. Please see my previous post linked below, where I precisely discussed when the ETHUSD pullback was coming and where we might land.
In this post, I highlight to you the areas you should keep an eye on if you want to enter a trade. I believe if you were in a long from $425-$40 (as I recommended in my first post) you should have closed that a long time again, and if you were in a short from the $503 (as I recommended in my second post), you should have taken profits already. Now we are in a no trade zone. I know that putting "No trade zone" on your chart doesn't get you many likes on trading view, but let's be rational here (and SMASH that like button anyway). We are between a key resistance and a key support area right now.
I believe we are headed up to the resistance area , which has shown itself to be between $480 - $484. So why have I drawn mine going up to $489? Because that is where the 0.5 fib retracement area is of this recent pullback, and where our prior high is. We must respect these levels.
The support zone has previously shown itself to play a key role in resisting and supporting the price. Additionally, that is where the 0.618 fib retracement level is for this whole bull move form $425. As I mentioned in my last post (see below), the bearish Gartley harmonic pattern gives you a second target in the 0.618 area (and further down but let's not talk about that until we break $450). Therefore I think this is a reasonable place to put buy / take profit orders.
However, we have formed a head and shoulders pattern on the 4hr (blue brush strokes on the chart). If we go down to the $450 area, please don't get sentimental and hold on to your longs. The target for the H&S is roughly the $425 area. Below that we are looking at taking out the $360 low. If you do buy in the support zone , PLEASE STICK TO YOU STOP LOSS or you'll be left holding the bag like a man in a discount store waiting for his wife to finish shopping. Don't be that man.
Now, in the short term I am expecting a bounce to our resistance zone (yellow arrows on the chart). However, ETH has proven itself to be incredibly weak when compared to BTC. Therefore, if BTC corrects further to the downside, don't expect a bounce from ETH. This is why I have labeled the area between $480 and $460 as a NO TRADE ZONE. You will get chopped up in this zone and become very frustrated. It's not worth it.
Look either way you cut it, this is not a good look for the ETH bulls (of which I am one). I have been calling for $540 since we were in the $420s on 7-12. But we must acknowledge this bearish development. If you are looking for something to trade, hold off on ETH for the (short) time being, in my humble opinion. ETH needs to discover itself and decide if it wants to join BTC's "ETF-to-the-moon" trend or just be another flailing alt-coin. Don't assume one way or the other- let the market tell you the direction. These are what the red and green dashed arrows indicate. This is the decision ETH has to make.
Now if you enjoyed this work, then please give me a like! Also, please check out my earlier posts and give me a follow on twitter (@im_calmly). I'm new to positing on Trading View, but I update often, so please be sure to give me a follow. Cheers!
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Here's a higher time frame view of our chart, showing the parallel channel at play as well.
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Here's the 1hr time frame again but now with the fib retracement levels drawn in white
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This bear wick is why I called this is NO TRADE ZONE. This is why even though I have arrow pointing upwards, I did NOT call for a long. Now we're headed to the support zone. Let's see what happens if / when we get there.
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We're moving into our support zone, with divergence in the 15 min. I am ladder my entries down below in the support zone, let's see if we get any fills.
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This low was close enough to buy support zone that I put 1 buy order here. I will keep adding in the support zone.
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Here is the Risk reward for that set up
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We are in the support zone. I am laddering my buys here.
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All right guys-- I'M GOING TO PUT MY MONEY WHERE MY MOUTH IS! I am ALL IN! I will keep you updated as to where I end up taking my profits (might not go all the way) BUT I WILL RESPECT THE STOP LOSS.
Guys, I can be wrong here. However, I really do believe this is our last best chance to keep the ETH bull run alive.
Guys, I can be wrong here. However, I really do believe this is our last best chance to keep the ETH bull run alive.
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Here’s a post I made about going all in in the support zone.
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Well that last trade was a dud. However, I respected my stop loss and only took a minor hit. However I will keep updating this idea. Here is where we are now. Notice this is where I call the last stand. I don't even know I can be bullish on ETH now, even if we bounce in this last support zone.
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We also have the parallel channel support here. If we don't hold this, full bear mode initiated.
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Here's an update of important areas
