Hello,
this is my View on Eth/USD based on Kraken (more historical data), after I had a smaller bullish play with profit but now again signs are a lot more bearish and we came to a very strong support level:
As you can see on the left chart (weekly), we are now at a very strong, several tested support area and had a clear stop of dropping there till now.
Scenario 1 : Bullish - long
Price is moving at the support, not breaking it and finaly spiking up a bit to the old level and moving there with low volatility. This would indicate a good entry point for long hodler.
Scenario 2: Bull Trap Dead Cat bounce
Spike up to old level at ~300$, moving there a bit and then falling apart, pushing through support and falling deeper.
Scenario 3: Bearish
Breaking through the support leading to a heavy bearish momentum because this strong support level fails to hold.
Next support level could be 100$ on the daily and 50$ on the weekly.
Trade
Possible trade is buying the support now, setting SL ~180 $ and aim for Scenario 1 or 2.
Or wait till support area breaks and short the market.
Sidenote
ETH is heavily influenced (like almost all coins) by BTC. So whenever you see reverals signs in BTC market, adjust your other trades.
this is my View on Eth/USD based on Kraken (more historical data), after I had a smaller bullish play with profit but now again signs are a lot more bearish and we came to a very strong support level:
As you can see on the left chart (weekly), we are now at a very strong, several tested support area and had a clear stop of dropping there till now.
Scenario 1 : Bullish - long
Price is moving at the support, not breaking it and finaly spiking up a bit to the old level and moving there with low volatility. This would indicate a good entry point for long hodler.
Scenario 2: Bull Trap Dead Cat bounce
Spike up to old level at ~300$, moving there a bit and then falling apart, pushing through support and falling deeper.
Scenario 3: Bearish
Breaking through the support leading to a heavy bearish momentum because this strong support level fails to hold.
Next support level could be 100$ on the daily and 50$ on the weekly.
Trade
Possible trade is buying the support now, setting SL ~180 $ and aim for Scenario 1 or 2.
Or wait till support area breaks and short the market.
Sidenote
ETH is heavily influenced (like almost all coins) by BTC. So whenever you see reverals signs in BTC market, adjust your other trades.