Welcome to ETH update and possible trade for it ; in this idea first of all we look at the ETH situation and then we talk about the possible trade for the ETH .
As you know the higher time frame that you analyze , the more stronger that your analysis become ;this is a very important rule in technical analysis but what I'm saying this ?
Because in all of my ideas I like to start with the higher time frames and then I go for the smaller one , the second thing that I thing it could be useful for you my friends , is I I suggest to use 3days chart rather than a daily or one week , because 3days chart is something between daily and the one week time frame , it's not too long like a weekly and it's ignore the possible false information's of the daily chart . I hope this 2 point could be useful for you my friends 🙏 .
Now let's talk about the ETH :
In the chart above we can see that the ETH after hitting the 4900$ started a bear trend and somewhere between 2500$ and 2450$ at the 0.5 Fibonacci level found support and all of us was thinking that the bear market is about to the end because many of the factors and indicators was saying that this level could be a bottom for the ETH ;
But right after that ETH created a rising channel in the bear trend and this means that we could have a bear flag , because as you know we had to considering the major trend and based on that talk about the chart , this help you to have more realistic analysis . After breaking the channel and also the daily support trend line , which was in alignment with the 0.5 Fibonacci level , ETH experienced another bearish impulse and now price is testing the weekly support structure (red box) and also we have 0.618 Fibonacci golden ratio here ; so in my opinion if price can hold above it we could see a another retest up tp the 0.5 (blue box) which could be a nice opportunity for a short position .
The technical target of this flag is around the 0.786 Fibonacci level , so let's talk about the possible trades for the ETH :
We are obviously in the bear trend and there is an old rule in trading which says that always trade in a favor of the trend or in the other word ( trend is your friend until the end ) ; so now we had to looking for a short position but not here at 0.618 Fibonacci level because open short position above the support is a completely losing trade or we can say that there is tiny chance to have successful trade .
I think it's better to wait for price to retest the 0.5 Fibonacci level or maybe the blue previous support trend line which now turning into a resistance and then open a short position or wait for the price to hit a 0.786 Fibonacci level and open a safe long position .
This is not a Financial advice and always trade based on your trading strategy ; have nice day my dear friends .
Thanks for your analysis, brief and into the point; best of luck for you my dear friend
kiu_crypto
⋅
@s_hasan_zolanvar you are welcome my friend , thank for reading my idea🙏🐺.
happyOil85252
⋅
Thanks Please check telegram
happyOil85252
⋅
Do you have a Telegram ID?
kiu_crypto
⋅
@happyOil85252 yes . this is my Telegram ID : KIU_CRYPTO
tahmidshahid
⋅
hello, excellent analysis. I was doing well in shorts but I opened a terrible long at $2600. Just trying to break even now. You think we can see around $2600 before having th next leg down? Much appreciated!
kiu_crypto
⋅
@tahmidshahid thank you mate🙏🐺 , honestly there is no Guarantee for testing the 0.5 Fibonacci but most of the traders like to wait for the restest of the break out , if this scenario play out , maybe you can exit fron your long with small amount of loss , price currently is above the weekly support so you still have a chance , however be careful because as I mentioned in my idea if this weekly support break , the next target is at 0.786 Fibonacci . have nice day my friend🙏🚀 .
tahmidshahid
⋅
@kiu_crypto, Thanks a lot brother, I really hope and pray it does come up to .5 Fib, put in a pretty good amount and now Im just trying to breakeven.
kiu_crypto
⋅
@tahmidshahid you are welcome bro , yes we can expext a retest of the 0.5 Fibonacci level , because currently price is above the weekly support and also 0.618 Fibonacci .
tahmidshahid
⋅
@kiu_crypto, Great :) When you have time, can you take a look at VRA/usdt brother? Id really appreciate that. Like you mentioned, I'm looking for good shorting opportunities in the near future.
best of luck for you my dear friend