Stay bullish on ETH until..
As usual, we start our analysis from the weekly timeframe. In my opinion, ETH is still bullish because:
1. Double bottom was confirmed when 2019 high was compromised
2. Market broke above triangle. If a triangle occurs after significant corrections, it usually means market is bullish once market breaks above the top trendline of the triangle.
3. The double bottom/triangle took a total of 2 years to form, which adds weight to the reliability of the formations.
Due to market is bullish, if you have long positions (investment) currently, what you need to know is at what price level should you take profits.
The 1st target can be @ around $520, which is the 0.618 fib retracement measured between mid-2018 high and end of 2018 low. This can be a good target if you are satisfied with the returns (for eg. If you have entered your buy at $260 and you are happy with 100% profits). Otherwise, $780 - $790 is a good target to take some profits, which is where the second down wave started back in 2018.
If you have not yet entered any investment position on ETH, although price has the potential to go higher it is certainly not the best time to enter as ETH is at an area where the probability favours weakness (bulls may be taking profits on their longs while the bears are entering their shorts). It is always suggested to wait for pullback to enter longs. Currently, a good support to enter/add investment positions are $250 & $150.
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DAILY TIMEFRAME
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In the last 2x weekly reports I told you $320 was a good support. If you are in swing longs, $320 could be a good place to enter longs.
Market has continued it’s climb after hitting $320 support. However, if price ever drops back to $320 again, it may not hold as that level has already been tested twice. Consequently, it may not be a bad idea to move your SL to break-even if you entered @ $320.
We know $320 was the support, what about the resistance? You will see some traders now talking about $390 being the resistance-turned-support level. However, in my opinion $390 is not a very good support as the market has travelled through $390 too many times in the past couple of months. This means most of the orders on the order book at around $390 have already been consumed/matched.
The better resistance is now at $444, being the 0.786 fib retracement in confluence with the August 2019 high.
Have a good day!
1. Double bottom was confirmed when 2019 high was compromised
2. Market broke above triangle. If a triangle occurs after significant corrections, it usually means market is bullish once market breaks above the top trendline of the triangle.
3. The double bottom/triangle took a total of 2 years to form, which adds weight to the reliability of the formations.
Due to market is bullish, if you have long positions (investment) currently, what you need to know is at what price level should you take profits.
The 1st target can be @ around $520, which is the 0.618 fib retracement measured between mid-2018 high and end of 2018 low. This can be a good target if you are satisfied with the returns (for eg. If you have entered your buy at $260 and you are happy with 100% profits). Otherwise, $780 - $790 is a good target to take some profits, which is where the second down wave started back in 2018.
If you have not yet entered any investment position on ETH, although price has the potential to go higher it is certainly not the best time to enter as ETH is at an area where the probability favours weakness (bulls may be taking profits on their longs while the bears are entering their shorts). It is always suggested to wait for pullback to enter longs. Currently, a good support to enter/add investment positions are $250 & $150.
~~~~~~~~~~~~~~~
DAILY TIMEFRAME
~~~~~~~~~~~~~~~
In the last 2x weekly reports I told you $320 was a good support. If you are in swing longs, $320 could be a good place to enter longs.
Market has continued it’s climb after hitting $320 support. However, if price ever drops back to $320 again, it may not hold as that level has already been tested twice. Consequently, it may not be a bad idea to move your SL to break-even if you entered @ $320.
We know $320 was the support, what about the resistance? You will see some traders now talking about $390 being the resistance-turned-support level. However, in my opinion $390 is not a very good support as the market has travelled through $390 too many times in the past couple of months. This means most of the orders on the order book at around $390 have already been consumed/matched.
The better resistance is now at $444, being the 0.786 fib retracement in confluence with the August 2019 high.
Have a good day!
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