Ethereum: Retrace To 340 Would Be Nice For New Long.

ETHUSD has a double bottom formation established off the low 300s psychological support area. This is a compelling sign of strength especially in light of the broader BULLISH trend that is still clearly intact.

While Ethereum looks strong here, it is a tough spot in terms of risk, especially since Bitcoin needs to provide leadership in terms of momentum. If Bitcoin fakes out and tests a lower support, the entire alt space will follow suit. So at this point we WAIT to see if the market provides a better price. If it runs without us, no problem.

Potential inflection points and targets for the next two weeks: (inflection points and targets are represented by the blue boxes on the chart).

If Bitcoin fails, it would not be unreasonable to see ETH retrace into the 338 to 340 area. This would be ideal for a higher low formation. Following candle confirmation after such an outcome, we would be open to a new swing trade long in this scenario.

If there is no confirmation and price tests the 300 level once more, we would be looking for a bullish reversal here as well.

If price breaks higher from the current price or retraces first and then breaks higher (along with a move in Bitcoin), the 445 to 450 area is the first reference point we would consider to measure reward potential from. This is a reasonable price to take partial profits.

In a more extreme bullish scenario, if the 500 level is cleared, the 540 AREA would be the next potential target to consider.

It is the plan that we trade, not the chart. The chart helps us to define risk and construct higher probability scenarios to be prepared for, NOT react to.

Thank you for checking out my analysis, hope it helps.