ACTION: LONG ETH/USD
ETHUSD
ENTRY PRICE: ~530
STOP LOSS: ~459
TAKE PROFIT: 25% @ ~657 , 50% @727, 25% @Trail
RISK REWARD: ~2.5
Time frame: 4H candles
Duration: 1-2 months holding period
FUNDAMENTAL ANALYSIS
SEC official: Ethereum not a security (Bullish news: For Ethereum and the launch of ETH Futures)
THIS NEWS will definitely clear some concerns and questions around the acquisition or trading of Ethereum or Bitcoin. With this, a lot of institutional investors, traditional investors and those who are skeptic about the future of these major cryptocurrencies due to the involvement of SEC can now have a sigh of relief. It’s not that SEC is bad, but they all seems to be scared about the kind of hard decisions which could affect prices drastically and potentially make their investments worth $0. Now, they can buy without worrying much about any sudden regulatory surprises or compliance related news coming out of the blue.
Learning from history, we saw a rally during the announcement of gold and bitcoin futures and a dip after the launch of the product. Thus, this presents an opportunity for LONG ETH/USD now till the actual launch of the futures product. (Futures provide the platform for people to short the asset so in the short term, people that are bearish will have the ability to do so - therefore the dip in prices after the launch)
Nonetheless, having futures product can popularize an asset which is a definitely a plus point for the market as whole. And with the support of CME and CBOE, it can attract more investors into looking at ETH as an asset which backs this trading set up in a huge manner.
TECHNICAL ANALYSIS
Although the candles are still below the 200EMA (stating a market downtrend), we look to get long due to the status of the market (a recovering one from the recent bottom) and due to the FA as explained above. The entry point is just slightly below the current price as the market will definitely need to take a break from the small rally and we look to get a better price rather then just getting in now. The stop loss is placed slightly below the yellow channel drawn with the take profit level at multiple levels to lock in the profits. 25% @ ~657 , 50% @727, 25% @Trail stop. (This is highly dependent on your risk appetite)
Therefore I see a long opportunity after the announcement from the SEC officials and the fact that ETH seems to recovering quite strongly from the recent bottom at 450 (bounce off the yellow bands).
ETHUSD
ENTRY PRICE: ~530
STOP LOSS: ~459
TAKE PROFIT: 25% @ ~657 , 50% @727, 25% @Trail
RISK REWARD: ~2.5
Time frame: 4H candles
Duration: 1-2 months holding period
FUNDAMENTAL ANALYSIS
SEC official: Ethereum not a security (Bullish news: For Ethereum and the launch of ETH Futures)
THIS NEWS will definitely clear some concerns and questions around the acquisition or trading of Ethereum or Bitcoin. With this, a lot of institutional investors, traditional investors and those who are skeptic about the future of these major cryptocurrencies due to the involvement of SEC can now have a sigh of relief. It’s not that SEC is bad, but they all seems to be scared about the kind of hard decisions which could affect prices drastically and potentially make their investments worth $0. Now, they can buy without worrying much about any sudden regulatory surprises or compliance related news coming out of the blue.
Learning from history, we saw a rally during the announcement of gold and bitcoin futures and a dip after the launch of the product. Thus, this presents an opportunity for LONG ETH/USD now till the actual launch of the futures product. (Futures provide the platform for people to short the asset so in the short term, people that are bearish will have the ability to do so - therefore the dip in prices after the launch)
Nonetheless, having futures product can popularize an asset which is a definitely a plus point for the market as whole. And with the support of CME and CBOE, it can attract more investors into looking at ETH as an asset which backs this trading set up in a huge manner.
TECHNICAL ANALYSIS
Although the candles are still below the 200EMA (stating a market downtrend), we look to get long due to the status of the market (a recovering one from the recent bottom) and due to the FA as explained above. The entry point is just slightly below the current price as the market will definitely need to take a break from the small rally and we look to get a better price rather then just getting in now. The stop loss is placed slightly below the yellow channel drawn with the take profit level at multiple levels to lock in the profits. 25% @ ~657 , 50% @727, 25% @Trail stop. (This is highly dependent on your risk appetite)
Therefore I see a long opportunity after the announcement from the SEC officials and the fact that ETH seems to recovering quite strongly from the recent bottom at 450 (bounce off the yellow bands).