Ethereum - LONG with low risk / high reward. an opportunity!
Dear friends,
Here we see the daily chart of Etherium. When in doubt, it is always good to zoom out to get a better overview without noise
It is very important for Ethereum that the lower trendline holds. If Ethereum closes below this trend line with a close for the day we will very quickly see 1500 and 1200 USD in the picture. I would only trigger a stop below the trendline and then only with a closed day candle. Otherwise you run the risk of being stopped out intraday, after which the price goes like a rocket in the other direction, without the trader's knowledge.
We also see on this chart a huge head-shoulder formation but the price has NOT broken through the neckline. So no bearish scenario yet! This will only start when the price closes below the neckline and not before!
By the way, this head shoulder pattern can continue until the end of 2021. If the price breaks through the +3000 level, it will quickly return to the old top.
Then there is the orange bullish wedge targeting the old top! This Bullish wedge is actually the failing head shoulder formation we see here.
Targets:
2281
2894
The orange trend lines of the wedge and the descending trend channel. These are dynamic because the value is falling every day as these lines are directed downwards.
Downside risk is low (you can place the stop tight under the neckline) as we are very close to the outer limit of the rising trend channel / neckline of the main shoulder formation.
Dear friends, please share your thoughts and idea's below. What do you think and why do you think it with or without a chart.
I wish you all good luck with trading!
Disclaimer Traders this is my view, no advice to buy or sell. Also always do your own research!
--->> Traders please follow me for updates and give me support with a like 👍 if you like me to continue this work. Thanks 💚
Here we see the daily chart of Etherium. When in doubt, it is always good to zoom out to get a better overview without noise
It is very important for Ethereum that the lower trendline holds. If Ethereum closes below this trend line with a close for the day we will very quickly see 1500 and 1200 USD in the picture. I would only trigger a stop below the trendline and then only with a closed day candle. Otherwise you run the risk of being stopped out intraday, after which the price goes like a rocket in the other direction, without the trader's knowledge.
We also see on this chart a huge head-shoulder formation but the price has NOT broken through the neckline. So no bearish scenario yet! This will only start when the price closes below the neckline and not before!
By the way, this head shoulder pattern can continue until the end of 2021. If the price breaks through the +3000 level, it will quickly return to the old top.
Then there is the orange bullish wedge targeting the old top! This Bullish wedge is actually the failing head shoulder formation we see here.
Targets:
2281
2894
The orange trend lines of the wedge and the descending trend channel. These are dynamic because the value is falling every day as these lines are directed downwards.
Downside risk is low (you can place the stop tight under the neckline) as we are very close to the outer limit of the rising trend channel / neckline of the main shoulder formation.
Dear friends, please share your thoughts and idea's below. What do you think and why do you think it with or without a chart.
I wish you all good luck with trading!
Disclaimer Traders this is my view, no advice to buy or sell. Also always do your own research!
--->> Traders please follow me for updates and give me support with a like 👍 if you like me to continue this work. Thanks 💚
Comment:
Dear friends,
The stop has been hit. But how is the price going to proceed?
Ethereum is now moving towards the old bottom around 1725. There now lies one last horizontal support. Breaks Ethereum below that then it is on its way to 1500 USD.
Will there be a counter-movement? There will certainly be one because we are heavily oversold in Ethereum and all other crypto's. This movement could be very aggressive to stop the many shorters which on its turn can trigger a shortsqueeze.
That means that traders need to close their short positions and it will activate a very strong upward move.
Traders who still hold Ethereum. Remember, you don't have a loss yet because you still have the coins. You make a loss when you have sold. Then you don't have any coins anymore so you do have a loss.
Currently, Bitcoin and Ethereum are the most important crypto currencies. So for those who still have them, it's definitely picking back up.
Personally, I still believe in a good 2nd half of the year, due to all sorts of macro economic conditions such as inflation, trillions being printed like toilet paper, and the future of crypto
Good luck dear friends!
The stop has been hit. But how is the price going to proceed?
Ethereum is now moving towards the old bottom around 1725. There now lies one last horizontal support. Breaks Ethereum below that then it is on its way to 1500 USD.
Will there be a counter-movement? There will certainly be one because we are heavily oversold in Ethereum and all other crypto's. This movement could be very aggressive to stop the many shorters which on its turn can trigger a shortsqueeze.
That means that traders need to close their short positions and it will activate a very strong upward move.
Traders who still hold Ethereum. Remember, you don't have a loss yet because you still have the coins. You make a loss when you have sold. Then you don't have any coins anymore so you do have a loss.
Currently, Bitcoin and Ethereum are the most important crypto currencies. So for those who still have them, it's definitely picking back up.
Personally, I still believe in a good 2nd half of the year, due to all sorts of macro economic conditions such as inflation, trillions being printed like toilet paper, and the future of crypto
Good luck dear friends!
Comment:
Update
Dear Friends,
Here is a quick update on Ethereum.
We are still seeing the main head and shoulders formation. Not a perfect one but it is there. The neckline is the green line.
Ethereum is still below this line and the day candle is closed with a PERFECT doji (EXACT on the green neckline / ascending trend channel) which can mark the end of the decline.
We also see a wedge and a descending triangle. Key point is the crossing point where I would like to see the price go above. This has not happened (yet).
The orange lines are a trendchannel between 1697 and 2900 USD.
Conclusion:
When Ethereum now continues to sink, it does not look good. Below the low of 1685 (trendchannel lower boundery) we are unfortunately heading for much lower targets. Does Ethereum rise above the neckline then it all looks bullish again and we can expect a breakout from the triangle wedge,
So the support level of 1697 is extremely important that it holds.
Good luck with trading!
Dear Friends,
Here is a quick update on Ethereum.
We are still seeing the main head and shoulders formation. Not a perfect one but it is there. The neckline is the green line.
Ethereum is still below this line and the day candle is closed with a PERFECT doji (EXACT on the green neckline / ascending trend channel) which can mark the end of the decline.
We also see a wedge and a descending triangle. Key point is the crossing point where I would like to see the price go above. This has not happened (yet).
The orange lines are a trendchannel between 1697 and 2900 USD.
Conclusion:
When Ethereum now continues to sink, it does not look good. Below the low of 1685 (trendchannel lower boundery) we are unfortunately heading for much lower targets. Does Ethereum rise above the neckline then it all looks bullish again and we can expect a breakout from the triangle wedge,
So the support level of 1697 is extremely important that it holds.
Good luck with trading!
At this moment, Ethereum is down to 1942 there is still the bullish scenarion intact.
It will change when a day candle close well under the crossing point.
Do you see it happen? It would surprise me bcause the bull market is over for a long time. Although even then it is not 100% sure like nothing is 100% sure in trading.Specially with heavely manipulated markets ;-)