Ethereum Trading Plan, July 16th – 22nd, 2023
Generally, ETH does not inspire me with confidence for the following reasons:
1. ETH is forming a Rising Wedge pattern. This pattern usually breaks to the downside.
2. On the daily TF, ETH is forming a bearish divergence on the MACD. However, the RSI doesn’t show a bearish divergence.
3. On July 14th, ETH deviated above resistance and was rejected. This makes me think that the move-up was just a liquidity grab.
4. Currently, ETH is at the 1930 resistance level. Since April 20th, ETH did not close more than one or two daily candles above this level. Strong resistance.
5. ETH is technically an altcoin, but it wasn’t damaged as much as the other layer ones were recently and I don’t think it will benefit as much either. That is my opinion, feel free to disregard it
Weekly Bias:
• My weekly bias is bearish. My bias is invalidation is if ETH closes a daily candle above 1946 and continues to the upside.
Short Trade Idea:
• Entry: 1931 (I am waiting for the weekly close before entering).
• SL: 1944 (previous daily close).
• Target: 1787
• TP: 1844, 1787.
• If ETH breaks below the wedge and tests it as resistance, I will compound my short.
• I will monitor ETH’s PA as it nears the upward-sloping trendline for a possible reversal.
NFA.
What do you think? Please share in the comments.
Best Wishes.
1. ETH is forming a Rising Wedge pattern. This pattern usually breaks to the downside.
2. On the daily TF, ETH is forming a bearish divergence on the MACD. However, the RSI doesn’t show a bearish divergence.
3. On July 14th, ETH deviated above resistance and was rejected. This makes me think that the move-up was just a liquidity grab.
4. Currently, ETH is at the 1930 resistance level. Since April 20th, ETH did not close more than one or two daily candles above this level. Strong resistance.
5. ETH is technically an altcoin, but it wasn’t damaged as much as the other layer ones were recently and I don’t think it will benefit as much either. That is my opinion, feel free to disregard it
• My weekly bias is bearish. My bias is invalidation is if ETH closes a daily candle above 1946 and continues to the upside.
Short Trade Idea:
• Entry: 1931 (I am waiting for the weekly close before entering).
• SL: 1944 (previous daily close).
• Target: 1787
• TP: 1844, 1787.
• If ETH breaks below the wedge and tests it as resistance, I will compound my short.
• I will monitor ETH’s PA as it nears the upward-sloping trendline for a possible reversal.
NFA.
What do you think? Please share in the comments.
Best Wishes.
