ETH/USD 4-Hour Chart: 2 Opportunities to Get LONG $$$
BITMEX:ETHUSD has started to break to the upside and is showing Bullish bias after building some Support around $205. As of writing this, it has fallen just short of the Range High @ $232.20 by a mere $0.40. There is definitely a magnet at the Swing High @ $235, it's just a question of whether it goes straight there now, or if we see a slight pullback to get Long before that happens.
Here are some possibilities of where I think price may go next:
1. Break up and test the current Range High and Swing High
- If not in position, I would be remaining flat and waiting for an opportunity to get Long OR Short depending on what Price Action looks like
- If the Swing High is broken, this could easily pump to somewhere between $240-$250, possibly even higher
2. We see a slight pullback to the 4-Hour Order Block, which is confluent with the 23.6% Fib
- Scalp Long
- Position Size = 25%-50%
- Entry = $223.40 (Order Block Equilibrium)
- Take-Profit = $235 (Swing High)
- Stop-Loss = $221.20 (Below Order Block)
3. We see a larger pullback to the 12-Hour Order Block, which is confluent with the 38.2% Fib
- Swing Long
- Position Size = 50%-75%
- Entry = $216.15 (Order Block Equilibrium)
- Take-Profit = $243.90 (August Low)
- Stop-Loss = $210.70 (Below Order Block)
4. Price below $210.70 would signal a potential break in Market Structure, we could see a bounce around $205, but I would not be trying to catch a knife there and would need to see what Price Action looks like before determining my next setup.
As per usual, this is highly dependant on where Bitcoin decides to go next.
- ETH & BTC Correlation = 0.85 (Very Strong)
Where do YOU think price is heading? Leave a comment, preferably with a chart, and let's discuss!
Here are some possibilities of where I think price may go next:
1. Break up and test the current Range High and Swing High
- If not in position, I would be remaining flat and waiting for an opportunity to get Long OR Short depending on what Price Action looks like
- If the Swing High is broken, this could easily pump to somewhere between $240-$250, possibly even higher
2. We see a slight pullback to the 4-Hour Order Block, which is confluent with the 23.6% Fib
- Scalp Long
- Position Size = 25%-50%
- Entry = $223.40 (Order Block Equilibrium)
- Take-Profit = $235 (Swing High)
- Stop-Loss = $221.20 (Below Order Block)
3. We see a larger pullback to the 12-Hour Order Block, which is confluent with the 38.2% Fib
- Swing Long
- Position Size = 50%-75%
- Entry = $216.15 (Order Block Equilibrium)
- Take-Profit = $243.90 (August Low)
- Stop-Loss = $210.70 (Below Order Block)
4. Price below $210.70 would signal a potential break in Market Structure, we could see a bounce around $205, but I would not be trying to catch a knife there and would need to see what Price Action looks like before determining my next setup.
As per usual, this is highly dependant on where Bitcoin decides to go next.
- ETH & BTC Correlation = 0.85 (Very Strong)
Where do YOU think price is heading? Leave a comment, preferably with a chart, and let's discuss!
Comment:
It seems as though the bulls have protected $225 (for now), watching Price Action closely and will update accordingly.
Comment:
Slight RSI Bearish Divergence forming, it has yet to confirm. MACD is starting to tick down.
I may consider pulling the bids @ $223.40 and waiting to attempt a Long from the 12-Hour Order Block @ $216.15.
A more aggressive scalp trader could attempt a Short from the current price level with a tight stop around $232, but that is not a trade I am going to take.
Generally speaking, the higher the TF of the structure, the more likely it is to hold.
That being said, the position size and tight stops warrants a potential attempt @ $223.40
I may consider pulling the bids @ $223.40 and waiting to attempt a Long from the 12-Hour Order Block @ $216.15.
A more aggressive scalp trader could attempt a Short from the current price level with a tight stop around $232, but that is not a trade I am going to take.
Generally speaking, the higher the TF of the structure, the more likely it is to hold.
That being said, the position size and tight stops warrants a potential attempt @ $223.40
Comment:
ETH decided to break up before presenting us with an opportunity to get Long.
These setups have been nullified.
On to the next one.
These setups have been nullified.
On to the next one.
Order cancelled
Traders should consider laddering their Bids (Asks) within a pre-determined range, like a Bullish/Bearish Order Block OR a Demand/Supply Zone.
Depending on the venue you are trading at and their trading (order execution) engine, you can use your own discretion when placing Take-Profit order types.
For Stop-Losses, I almost ALWAYS use the Market-Stop order type to ensure that the position is closed in full.