If you skipped buy opportunities based on reversal and breakout signals below 200.00, now you need to think about how to join the uptrend. The market is , and buying is logical in this market. But how to do it properly?
The price reached the . We should be ready to see a reversal as the market looks overbought. is in the overbought zone. It will be able to provide us a good signal. Yes, lines, histogram, and DMI confirm the strength of buyers and the further upward movement. If the price breaks 280.00 resistance, it will be able to reach 366.75 level, and it will be the top of the previous movement. But I don't want to follow a possible breakout signal. The market will become super overbought, and it will increase the chances to buy on the top. It will be better to miss a profitable trade than to do stupid things.
The market is , and it is a very important signal now. It means we have to wait for pullbacks and buy using reversal signals from support levels, SMA50, SMA100, SMA200, and important .
I would like to buy from 220.00, and it is my 1st buying zone. If the price moves below it, there will be other buy opportunities. Such type of trading will allow me to get good entry points not far from support zones. It will make stops small, and the market will have a good space for the upward movement.
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Considering the current market conditions (JP Morgan+ConsenSys, 1 Billon USD DeFi cap, rising ETH Futures Volume) I see no reason for ETH to fall back as much as 42% from 280 to 160 whatsoever.
In deed the market is becoming overbought on several time frames. Dips are bought very quickly these days so the 220 support line can be used for a reasonable reversal bet with a nice Risk/Reward Ratio.
However, a buy-in in the area between the 'local high of Aug 6th at 240' or the 'channel high from Feb 9th at 230' and the 220 line, might be a saver option than hoping for the price to really touch the sup line at 220.