ETHUSD Update: Healthy Correction vs Bloody Reversal
I have slightly adjusted the downward trendline that Ethereum is currently following. Price has tested it twice in the last 24 hours and a fall below this line would confirm it as resistance. Looking back all the way to December we can see the market likes a certain price range for Ethereum falling between $650 and $730. The $730 price has been highly reactive, acting as resistance on 3/12, 3/10, 12/29, and 12/13 and then acting as support (albeit minor support) on 3/7 and 2/7. Mr Market seems to show this as a favorite price range since mid-December. A decisive break above $730 with good volume would likely be a buy signal.
Otherwise, Ether is showing indecision over the last 30 hours. It has tested the downtrend line and has yet to break past it with conviction. I will likely place a *small* buy order in this area with a tight stop loss to insure I don't miss the possible move higher I just discussed if we do break out to the upside. Otherwise my pessimism persists and I will wait for a better buying signal at a stronger support zone. The key support to watch right now is the $678 area where we could see a double bottom or higher low to signal a trend reversal. If price breaks this support then I will look to $599 and $518 for support.
***This is not investing advice. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
Otherwise, Ether is showing indecision over the last 30 hours. It has tested the downtrend line and has yet to break past it with conviction. I will likely place a *small* buy order in this area with a tight stop loss to insure I don't miss the possible move higher I just discussed if we do break out to the upside. Otherwise my pessimism persists and I will wait for a better buying signal at a stronger support zone. The key support to watch right now is the $678 area where we could see a double bottom or higher low to signal a trend reversal. If price breaks this support then I will look to $599 and $518 for support.
***This is not investing advice. All investors should seek guidance from licensed financial advisers and not random people on the internet.***
Comment:
Despite only good news coming out regarding crypto and Ethereum we have seen a large drop back under the trendline. My long has been stopped out. It was a high risk trade which is why I made it a very small position.
Now look to the $650-$640 area for signs of reversal, othewise it's on down to $599.
Now look to the $650-$640 area for signs of reversal, othewise it's on down to $599.
Regardless, I have a small buy order in at $729 with a tight stop loss. The longer we hover around the $729 resistance, the more I think we will go higher from here. Generally a 33% retrace is seen as a legitimate correction indicative of a strong bull market.