The price of many cryptocurrencies continues to go sideways. Ethereum approached the upper border of its price range. We see two paths of action:
1) Trade for a breakdown of the resistance level , set up buy orders by level and try to grab an impulse, if any;
2) Try short positions, open sales with a short stop order.
We have a good bearish divergence on the RSI , and the Fibonacci level is 0.618 which is combined with a simple local resistance level from which the price has fought off several times already. In connection with this, we prefer the second option with a short position. It has a clear understanding of the ratio of risk to profit. And this is one of the main things in trading strategies to understand, and to build the most favorable risk to profit ratio.
1) Trade for a breakdown of the resistance level , set up buy orders by level and try to grab an impulse, if any;
2) Try short positions, open sales with a short stop order.
We have a good bearish divergence on the RSI , and the Fibonacci level is 0.618 which is combined with a simple local resistance level from which the price has fought off several times already. In connection with this, we prefer the second option with a short position. It has a clear understanding of the ratio of risk to profit. And this is one of the main things in trading strategies to understand, and to build the most favorable risk to profit ratio.
Trade active:
Those who tried the short, we recommend placing a very short stop order, behind the last peak of $ 195.1, we transfer the position to almost breakeven.