Price could not even retest the breakdown at $3,500. So far it looks very bearish with no strength on any rally.
There is a potential setup of bullish RSI divergence on 4h chart. If we make a new low at $3,300 and a higher low on the RSI.
$3,300 should be a buy on the first touch.
Next support is near the lows around $3,200. Bellow that we are going to start...
I doubt it, but if we get another touch of the semicircle triangle around the $3,850 resistance it will be a really good chance to short with a potential measured profit of about 36%.
This will also enter the long term area that I am targeting for long term longs. ($1,870 - $2,450)
Short at $3,700 - $3,850
Stop at $4,000
A very simple descending triangle is forming on 4 hour chart. These have a high probability of success on ETHUSD and have played out many times in the past.
A 4h close bellow $115 will give us a target of $100
Short below $115
Stop at $117
Resistance level around 0.0000122
Support level around 0.0000112
Until these levels are broken trades can be taken to play the range:
Short the resistance level and cover near support
Long the support level and sell near resistance
Keep tight stops under/over support/resistance
Once we have a confirmed 4h candle close under support order over resistance you can...
ETH should find support in the 0.0332-0.0337 area. There is horizontal support as well as support from moving averages in that area.
Entry: anywhere in the 0.0332-0.0337 range
Stop: under 0.0330
Timing of the reversal: 24-48 hours.
Alternatively under 0.0330 there will be continuation of the current downtrend from the local top.
I am using Bitfinex chart for this setup so prices will be a little bit different than XBTUSD (BitMEX) and BTCUSD (Bitstamp).
Go long on a break of the small horizontal line and the big down trend line. (around $4,050)
Stop around $3,900-$3,950
3 Targets listed on the chart.
Take a 1/3 or 1/2 short with a wider stop at the T3 level. Add to the short at the T2...
Not going to add much notes in here and leave the stop and entry decisions to the trader as everyone has different preferences.
There are two scenarios that will play out over the next few days.
If we break the resistance cluster at $3,600 next area will be $3,900-$4,100
On the downside, a test of $3,400 should be a good buying opportunity.
I expect $3,300 to hold for now which can be used as stop.
There is a big bullish divergence on a few time frames going all the way up to daily.
Yesterday candle is a kind of a reversal candle. It would have been way more convincing if it was a hammer and green.
That said we are oversold and due for a bounce. The Bitfinex shorts are near all time high at 42,000.
Buy on a break of the blue trend line or a break of the...
If we make a new low on hourly chart in the next 2-3 hours and the RSI prints a higher level than the previous low we will have a bullish divergence.
Trade buy and target area noted on chart.