Ethereum: New Price Channel and How to Trade
The daily timeframe does not give us enough information, and that's why I offer to look at the 4H chart.
The price broke the local uptrend line. It gave us a bearish signal and a possible trend reversal. The price reached SMA100 and bounced. We got a new swing low higher than the previous one. If we add two previous swing highs, which are at the same level and two local swing lows, which are nearly at the same levels, we will be able to draw a horizontal price channel. If Bitcoin does not continue the upward movement, Ethereum will be able to keep the sideways movement in the borders of this price channel. It will make the trading simple as we will buy from the bottom and sell at the top of the channel.
If we talk about the continuation of the main uptrend, for this, the price will have to break 286.00 resistance level. The breakout won't be a good signal for buying as the entry price will be far from SMAs. It will be better to buy from SMA100, SMA200 using reversal signals, or to use daily and weekly timeframe in order to catch the long term movement.
The breakout below 242.00 support zone will tell us about the further downward movement to 225.00 support and SMA200.
This market is in my portfolio. I'm going to add more trade volume to my long position after the pullback to the bottom of the price channel. If the price drops below it, it will be a good buy opportunity to add more long positions using better prices.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
The price broke the local uptrend line. It gave us a bearish signal and a possible trend reversal. The price reached SMA100 and bounced. We got a new swing low higher than the previous one. If we add two previous swing highs, which are at the same level and two local swing lows, which are nearly at the same levels, we will be able to draw a horizontal price channel. If Bitcoin does not continue the upward movement, Ethereum will be able to keep the sideways movement in the borders of this price channel. It will make the trading simple as we will buy from the bottom and sell at the top of the channel.
If we talk about the continuation of the main uptrend, for this, the price will have to break 286.00 resistance level. The breakout won't be a good signal for buying as the entry price will be far from SMAs. It will be better to buy from SMA100, SMA200 using reversal signals, or to use daily and weekly timeframe in order to catch the long term movement.
The breakout below 242.00 support zone will tell us about the further downward movement to 225.00 support and SMA200.
This market is in my portfolio. I'm going to add more trade volume to my long position after the pullback to the bottom of the price channel. If the price drops below it, it will be a good buy opportunity to add more long positions using better prices.
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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