ETHUSDT. Where to Go Long and Where to Take Profits

Hi traders and investors!

This analysis is based on the Initiative Analysis concept (IA).

August has ended, and it’s time to look at the monthly charts. Let’s focus on Ethereum. The price is trading within the 1,700–4,868 range. The August candle touched the upper boundary of this range and we saw a pullback.

If we go back a bit to June 2022, we can see a strong seller candle that broke through the lower boundary of the range on high volume. After that came accumulation, and then the buyer absorbed the seller’s candle. That was the moment when investors could look for long entries with the goal of reaching the upper boundary of the range. The second good entry opportunity for investors came in April–May of this year, when the price retested 1,700.

So, where should we be looking for trades now? Let’s first identify where the price could go. To do this, we measure the price deviation downward from the 1,700 level and project it onto the upper boundary of the price range. I estimate the price could reach around 5,681.

Now it’s important to understand where we can find an entry. For this, let’s look at the daily chart.

On the daily timeframe, the price is also trading within the 4,060–4,956 range. There’s a strong buyer candle with high volume, but so far the buyer hasn’t been able to resume the move from it. That’s why I expect the price might dip below 4,207 and then head toward a new ATH. That’s the first scenario.

The second scenario is a dip below 4,060 into the 3,880–4,060 range, followed by a move to a new ATH. The target of about 5,700 was already defined on the monthly chart.

So, where should you enter? The entry comes after the price, in either of these scenarios, moves back above the broken level.

Wishing you profitable trades!