I won't be surprised if the price can pass this zone, but also a false breakout can be as well. The market does not look ready for the breakout. is not far from the overbought zone, and probably it is the main reason for me to be careful with buying based on the breakout.
We will have just a higher risk of catching a reversal.
Our goal can be to cut down all possible risks and, at the same time, not to miss a buy opportunity.
We can do it just using splitting our trade into 2 parts. The 1st part can be used for buying Ethereum following the breakout above the . The 2nd part should be used when the market corrects the upward movement and gives us a solid reversal signal above 118.50 level. Doing this, we will be able to make profit if the market continues the upward movement without a pullback, but we won't have high risk. But if the market gives us a false breakout and moves lower, we will be able to buy using better prices. It is my plan. It can be good or not, but it is a plan. What about you, do you have a plan how to trade in the ETHUSD market? Share it with us.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.