ETH/USDT appears to be holding bull momentum despite the large down move across Cryptocurrency as a whole. In light of this, Ethereum is now a good buy opportunity as not only a safe haven for your capital, but a good potential upside move.
Price is picking up momentum to the upside. Price recently hit a bottom at 775 on the 17th January. Since then, price has been having successful higher lows, despite poor market conditions.
I am expecting Ethereum to pick up momentum after the bounce on the side-wards support zone at 1087 which was just hit earlier.
This trade could play out in 2 ways, I have outlined these below:
-Price finds support at the side-wards support level at 1087 (at current levels) and bounces to the highs with an impulse leg. If this happens, the upside target is 1370 which corresponds with all time highs. -Price loses momentum inbetween the horizontal resistance at 1370 and the horizonal support at 927. If this happens, price may break the short term side-wards support line at 1087 for the downside retest. When this happens price then bounces on the lower horizontal support at 927 and then bounces to the upside to the upside target of 1370.
Bare in mind, the first scenario is strongly preferred to the second. If price hits the bottom horizontal support at 927, it is extremely unlikely it will reach the upside target of 1370 anytime soon. The first scenario offers a fantastic opportunity to not only long for profit, but also to hedge against losses in the markets.
I will updating this analysis if it receives above 40 likes.
Kommentar
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Ethereum has come right down to the support zone and bounced exactly as predicted. The buying here looks strong and I am excited to seeing further momentum in this trade !
Funnily enough this analysis was supposed to be in USD.
CryptoMagician34
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@TomProTrader, fair enough. Im canadian and my exchange has paired everything to btc, including Canadian fiat so for now im ok. Im starting to think though that this month could be big for ETH as it's showing more stability and comes with considerably less bad news.
TomProTrader
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@CryptoMagician34, Yes, Ethereum has been significantly more stable than many of the leading Cryptocurrencies in bad market conditions.
Jbos865
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Hi Tom, can you take a look on ETH/BTC pair? I think this shows very much the current strength of ETH as its moving towards ATH levels in the pair. What do you think?
TomProTrader
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@Jbos865, Looks strong, have been holding ETH/BTC for a few days now.
A good one to hold to protect from losses, as Ethereum is a pretty good safe haven.
oliviermo75
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i hope it will increase as well. And cross or brush against the horizontal resistance 1370 !
Thank for your analysis ;)