ETHUSD Perspective And Levels: Double Top In Resistance Zone.
ETHUSD Update: Double top has now appeared within the 320 to 352 resistance zone, just under the 357 extension. This is a bearish sign and can lead to a retest of the low 300s which is the area I am looking for a possible swing trade long.
Now keep in mind, this double top does not mean the strength of this market is over, but it is a formation that signals weakness at the moment. A retrace to 315 can present a double bottom and possible swing trade long opportunity as well, it all depends on the price action IF the market can retest that level.
The other factor is BTC because if bearish momentum takes it to much lower prices, this market may get affected as well. If that is happening during a retest of the low 300s, I will most likely avoid until BTC is reversing also. The relationship between these two coins is far from predictable, but I would rather observe it while flat, than stuck in a position that has more factors against me.
The current levels still offer a chance to lock in some profit for those who got in a much lower prices, BUT if you intend to hold some as an investment, this does not mean sell it all and try to get back in. Holding a core position means you allocate a small percentage of your capital to holding some no matter what, and then adding to the position at better prices. Locking in profit on a small portion of the position never hurts, and reduces risk which is never a bad thing either.
If this market breaks below the 300 level, then the next support is the 295 level which is the .382 of the entire bullish swing. If this market is going have a chance at pushing a new high, it needs to maintain a support above this level. A break below will increase the chances that this market will go back into a consolidation rather than retest the highs.
In summary, this market is now showing a clear bearish reversal sign which is the double top along with the fact that price is within a major resistance zone. These factors point to lower prices ahead which may offer a swing trade long opportunity if a bullish reversal appears around the 315 level or low 300s. The idea is to capture an attempt to retest the highs which is a reasonable expectation based on recent price structure. Also keep the other eye on the BTC market, because any major support breaks there can work against the support scenario that I am looking for.
Comments and questions welcome.
Now keep in mind, this double top does not mean the strength of this market is over, but it is a formation that signals weakness at the moment. A retrace to 315 can present a double bottom and possible swing trade long opportunity as well, it all depends on the price action IF the market can retest that level.
The other factor is BTC because if bearish momentum takes it to much lower prices, this market may get affected as well. If that is happening during a retest of the low 300s, I will most likely avoid until BTC is reversing also. The relationship between these two coins is far from predictable, but I would rather observe it while flat, than stuck in a position that has more factors against me.
The current levels still offer a chance to lock in some profit for those who got in a much lower prices, BUT if you intend to hold some as an investment, this does not mean sell it all and try to get back in. Holding a core position means you allocate a small percentage of your capital to holding some no matter what, and then adding to the position at better prices. Locking in profit on a small portion of the position never hurts, and reduces risk which is never a bad thing either.
If this market breaks below the 300 level, then the next support is the 295 level which is the .382 of the entire bullish swing. If this market is going have a chance at pushing a new high, it needs to maintain a support above this level. A break below will increase the chances that this market will go back into a consolidation rather than retest the highs.
In summary, this market is now showing a clear bearish reversal sign which is the double top along with the fact that price is within a major resistance zone. These factors point to lower prices ahead which may offer a swing trade long opportunity if a bullish reversal appears around the 315 level or low 300s. The idea is to capture an attempt to retest the highs which is a reasonable expectation based on recent price structure. Also keep the other eye on the BTC market, because any major support breaks there can work against the support scenario that I am looking for.
Comments and questions welcome.
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