Ethereum: Sideways Movement and How to Trade
Yesterday, I wrote about Bitcoin and possible market movement based on the 4H chart, today, let's look at Ethereum using the same timeframe.
The price is moving sideways at 320USD level. We have a consolidation period, which can be the basis for a new upward movement. Yes, sometimes corrections movements can be like this, without deep pullbacks to the main trend lines and MAs. If the trend is strong, we should wait for a breakout above the local downtrend line. The buyers will try to reach 330USd and 350USD levels as the nearest targets. The breakout signal can be used for short term trading with a stop below the local swing low.
I'm not sure that this breakout will motivate me to open a new long position. I would like to see a pullback at least to 300USD support, which is also supported by SMA50. The reversal signals from this zone will be more reliable, and the market will have more space for the upward movement. As a result, we will be able to buy with a good risk-reward ratio like 1:2 / 1:3.
Maybe, just to catch a possible upward movement after the breakout above the downtrend line, I will buy 1-2 coins. But definitely, it won't be the main position.
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 is moving sideways at 320USD level. We have a consolidation period, which can be the basis for a new upward movement. Yes, sometimes corrections movements can be like this, without deep pullbacks to the main trend lines and MAs. If the trend is strong, we should wait for a breakout above the local downtrend line. The buyers will try to reach 330USd and 350USD levels as the nearest targets. The breakout signal can be used for short term trading with a stop below the local swing low.
I'm not sure that this breakout will motivate me to open a new long position. I would like to see a pullback at least to 300USD support, which is also supported by SMA50. The reversal signals from this zone will be more reliable, and the market will have more space for the upward movement. As a result, we will be able to buy with a good risk-reward ratio like 1:2 / 1:3.
Maybe, just to catch a possible upward movement after the breakout above the downtrend line, I will buy 1-2 coins. But definitely, it won't be the main position.
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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