ETHUSD: Relevant Support But Still Lacking For New Long.

BITFINEX:ETHUSD   Ethereum / U.S. Dollar
ETHUSD update: Price has retraced back to the 656 support which is a predetermined level. There is even a bullish pin bar present which can be tempting to enter a long, but just like BTC , this market is also lacking price structure.

The 656 level is the .382 of the recent bullish structure which is an attractive level to look for long setups. The question is, what does a long setup look like? Pin bars and other candle stick reversal patterns can serve as validation points, but what is missing here is a broader structure like a double bottom formation.

Just like the aggressive trade signal that we recently called in BTC (on S.C.), this market is showing a similar situation. Trend line support, a predetermined level (which BTC did not have at the time of the signal) and a bullish pin bar . This is the recipe for a long, but the problem is the probability, especially in light of a BTC market that has not proven any technical stability yet.

Keep in mind, price can fluctuate up to the 714 level (.382 resistance of current bearish swing), or even the 741 area (.618 of recent bearish structure) only to establish a lower high. Day trading up to these levels is one thing, but swing trading carries too much risk.

In summary, at S.C., we are now waiting for the more conservative criteria to appear before entering into the next swing trade long. Stability can be expressed in the form of chart patterns and until one of our setups appear, we will not issue any new signals. As long as momentum stays bearish , it is still within reason to expect price to push lower. How much lower? There is no way to determine that, especially with no particular structures in place. Patience is key. These markets will find stability, it is a matter of time. Instead of deciding for the market, at S.C., we will simply wait for it to provide clarity and then determine if there is an opportunity worth entering.

Questions and comments welcome.
Marc Principato, CMT |Author: Analyze Any Financial Market Like The Pros Using Price Action| | Cofounder (S.C.)

Thanks @MarcPMarkets, took my profit at the 725 level, just before it started dropping again.
Let's wait for 500s.
Thanks Marc!
marc I hear you on the swing but dude I missed the whole recent rally and some EW guys are calling this next wave a 3, I'll take the heat to 7.5k as the upside is unlimited. So i'm long at 8.5
Thank you, Mark, for your work, by the way, what do you think about this
As you said altc are ruled by BTC, it seems BTC it is expected to have support between 8200-8600, and usually, after the consensus, there is a bullish trend. Anyway, we'll know it for sure next week.
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