[GUIDE] How to Determine Whether You Have a GREAT Entry on ETH

Our job as traders is to buy low and sell high. In this analysis I will walk you through the several techniques you can use to determine when Ethereum is considered 'low'.

The biggest challenge we face now when entering for a long position is a good entry. The price is definitely "high" in and of itself, as Ethereum is in a massive uptrend.

One of my top suggested choices for a great entry position is buying near a retracement to a local support zone. On the chart I showed many long term horizontal zones. Another issue for the current uptrend on Ethereum is that there is relatively few horizontal price action to work with. A solution I applied to this is taking the longer term horizontal price levels.

In this case you could wait for a retracement to about ~$715 for a great entry. Using support and resistance zones you should then also use a similar methodology to determine your exit positions. I suggest a long towards ~$820 for a 10% trade or a long towards a more aggressive target of ~$980 for a 33% target.

Another option to mark a "low" position is by using something like a parallel channel. The one I used on the chart is not very clean from a technical perspective but still gives an indication of trend. A move towards the lower end of the channel could indicate a great entry position and marks a "low" price. In this case a level of say ~$680 could be used for instance to buy Ethereum.

When looking at the sell side using a channel we would make it more time dependent. If the price moves up fast and sudden, we're looking at a price target of around ~$880 around the 11th of January, or a price target of ~980 around the 27th of January.

Other options include using hidden bullish divergences and indicators such as the MACD but I won't go into detail on those in this post.


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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!