Hi guys!
On a daily chart, ETH/USD seems to be set to steady growth over the next month. Technically, we’ve got two patterns: an ascending trend channel and an ascending triangle. Each of these patterns represents a continuation chart pattern and indicates that an uptrend is expected (is more likely than not).
In particular, there is an upward trend channel on a daily chart. The trendlines of this channel slope in an upward direction, within which the ETH price is making higher highs and higher lows. This is a strong continuation pattern that confirms an upward trend signal.
Also, there is an ascending triangle, as shown on the chart. The trendline connecting the high prices is horizontal at $144, and the trendline connecting the low prices forms an uptrend. What this pattern means is that market participants have been selling ETH at $144 over the past two weeks, always putting a halt to rallies at the same price point, but that buyers are getting more and more bullish and stepping in at increasingly higher prices to halt sell-offs instead of waiting for further price declines.
We know that an ascending triangle typically forms in an uptrend and forms a powerful bullish signal.
If the rally continues above the $144 (beyond the triangle), that will generate a strong bullish signal.
Besides, we have a series of confirmatory signals from technical indicators. On a daily timeframe, the Stochastic oscillator (5,3,3) is growing, and the %K line is moving above the %D line. This confirms an upward trend and a buy signal.
We’re also seeing that the Fibonacci Retracement CONFIRMS all of the previous two impulse waves up and two corrective waves. The take-profit price at $165 is precisely located at 61.8% of the Fibonacci sequence, and the 2nd target is located at 78.6%. This further confirms that the price targets we’ve set are valid.
Importantly, there is another one significant ascending triangle, restricted from above by the resistance at $165. As the triangle has been forming over the past three months, each rally ceased at a higher and higher low price point, suggesting the buying demand is exerting greater price influence than selling demand over the medium-term. This also indicates that buyers will most likely challenge the $165 resistance once again and the price will break through it.
We know that the longer the triangle pattern persists, the more volatile and sustained the subsequent price movement is likely to be! If the price breaks through and above the $165 resistance - the continuation of an uptrend is expected.
So, watch carefully for the trade signals, as indicated on the chart above! Don’t miss this profitable opportunity!
Here is the summary of trade signals:
- Enter Long (Buy) now at $140.
- Set the Stop-Loss at $116 - the next significant support level.
- Set the Take-Profit (partial close) at $165 - the next significant resistance level. Close the position fully at $190.
- Forecasted P&L: +$43 or +30% (or +300% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 1.8x
If the price drops through and below the current upward channel, there will be excellent opportunities for short selling.
The reversal (downtrend) signal will be generated if the price drops below the $116 support.
I hope this analysis was useful to you!
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates to this trading strategy in the future, including all new trading signals. This will allow you to stay on top of the current Ethereum trend and hopefully maximize your profits!
If you agree, please, Like this Idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
On a daily chart, ETH/USD seems to be set to steady growth over the next month. Technically, we’ve got two patterns: an ascending trend channel and an ascending triangle. Each of these patterns represents a continuation chart pattern and indicates that an uptrend is expected (is more likely than not).
In particular, there is an upward trend channel on a daily chart. The trendlines of this channel slope in an upward direction, within which the ETH price is making higher highs and higher lows. This is a strong continuation pattern that confirms an upward trend signal.
Also, there is an ascending triangle, as shown on the chart. The trendline connecting the high prices is horizontal at $144, and the trendline connecting the low prices forms an uptrend. What this pattern means is that market participants have been selling ETH at $144 over the past two weeks, always putting a halt to rallies at the same price point, but that buyers are getting more and more bullish and stepping in at increasingly higher prices to halt sell-offs instead of waiting for further price declines.
We know that an ascending triangle typically forms in an uptrend and forms a powerful bullish signal.
If the rally continues above the $144 (beyond the triangle), that will generate a strong bullish signal.
Besides, we have a series of confirmatory signals from technical indicators. On a daily timeframe, the Stochastic oscillator (5,3,3) is growing, and the %K line is moving above the %D line. This confirms an upward trend and a buy signal.
We’re also seeing that the Fibonacci Retracement CONFIRMS all of the previous two impulse waves up and two corrective waves. The take-profit price at $165 is precisely located at 61.8% of the Fibonacci sequence, and the 2nd target is located at 78.6%. This further confirms that the price targets we’ve set are valid.
Importantly, there is another one significant ascending triangle, restricted from above by the resistance at $165. As the triangle has been forming over the past three months, each rally ceased at a higher and higher low price point, suggesting the buying demand is exerting greater price influence than selling demand over the medium-term. This also indicates that buyers will most likely challenge the $165 resistance once again and the price will break through it.
We know that the longer the triangle pattern persists, the more volatile and sustained the subsequent price movement is likely to be! If the price breaks through and above the $165 resistance - the continuation of an uptrend is expected.
So, watch carefully for the trade signals, as indicated on the chart above! Don’t miss this profitable opportunity!
Here is the summary of trade signals:
- Enter Long (Buy) now at $140.
- Set the Stop-Loss at $116 - the next significant support level.
- Set the Take-Profit (partial close) at $165 - the next significant resistance level. Close the position fully at $190.
- Forecasted P&L: +$43 or +30% (or +300% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 1.8x
If the price drops through and below the current upward channel, there will be excellent opportunities for short selling.
The reversal (downtrend) signal will be generated if the price drops below the $116 support.
I hope this analysis was useful to you!
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates to this trading strategy in the future, including all new trading signals. This will allow you to stay on top of the current Ethereum trend and hopefully maximize your profits!
If you agree, please, Like this Idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
