I warned about a correction in ETH and pointed out support zones 2 weeks ago, so I hope it has served you well.
Initially, I thought we had started to correct at around $1600s, but in fact, the price surged to $2000s and only corrected after that. That's why I always emphasize the "dont-short-the-market" thing. Today, ETH price has dropped from $2000 to $1365, which is a 33%-correction, dipped to our yellow zone and then bounced back quickly to the $1400s.
It seems to me (personally) that this is a reasonable area to scale in right now (the closer the yellow zone the better). I am not saying that we could not go lower touching the green zone or below. It is just me feeling satisfied with this price zone given the current situation. That said, if ETH price keeps dropping and closes below the $1000s, I would seriously take into account the possibility that the bull market is over. Until then, this correction is healthy and totally necessary for the market. It helps reset the funding rate, cut off the over-leveraged positions and potentially incentivize capital rotation from BTC to altcoins. The same thing happened in the previous market cycle. If I anticipate correctly, altcoins shall outperform BTC after this correction. But so far, as you know, these all are just my speculation :)
Have fun trading.
Initially, I thought we had started to correct at around $1600s, but in fact, the price surged to $2000s and only corrected after that. That's why I always emphasize the "dont-short-the-market" thing. Today, ETH price has dropped from $2000 to $1365, which is a 33%-correction, dipped to our yellow zone and then bounced back quickly to the $1400s.
It seems to me (personally) that this is a reasonable area to scale in right now (the closer the yellow zone the better). I am not saying that we could not go lower touching the green zone or below. It is just me feeling satisfied with this price zone given the current situation. That said, if ETH price keeps dropping and closes below the $1000s, I would seriously take into account the possibility that the bull market is over. Until then, this correction is healthy and totally necessary for the market. It helps reset the funding rate, cut off the over-leveraged positions and potentially incentivize capital rotation from BTC to altcoins. The same thing happened in the previous market cycle. If I anticipate correctly, altcoins shall outperform BTC after this correction. But so far, as you know, these all are just my speculation :)
Have fun trading.
Comment:
I am gonna de-risk ETH from here. All the coins look weak and might be dragged down together with Bitcoin.
Comment:
In again. I am gonna leave it there
