The story behind ETH is clear - if BTC is the new currency, ETH is the new internet. This much is understood by the mass and without a strong contender, for now, ETH could perhaps in the future surpass BTC in terms of Market Cap. Most long-term traders on the market I talk to are still unsure about the winner for the cryptocurrency space, but they have no doubt about the success of Ethereum platform.
Now here is the trade, if you look at the daily chart over the past 2-3 days and compare BTC with ETH you can see who is holding up better - it's ETH. Been up since yesterday, while BTC has just started the run today.
Now that the crypto market is showing positive signs for another run, whether it is a new long-term trend or just a short-term bounce we'll see about that. But what I'm going at is the short-term trade.
In the 60 minutes TF we see a clear breakout 750.00 resistance level, very similar picture across all major cryptos I might add. I think we're seeing a larger uptrend channel forming with target level within the channel on the short-term basis to be 820, if we breakabove that the 840 to 860 levels.
I would cut my losses if we break below the 740.00 level. Why? If you look at the previous few candles low, that is where we bounce.
I like keeping things simple - Channels, one simple MA, and such. Rounded numbers.
Please let me know what you think. Cheers people!
Komen
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It seems we are testing a larger downtrend line and thus so shooting through less slowly than I had anticipated. Nonetheless the 740 support line is still holding up and 60min chart trend still suggest upward momentum. Really it's going to break either way soon. My bet is to the upside. Let's see.
Dagangan ditutup: hentian tercapai
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Hi Guys, I was away for almost two days on holiday so a little late on the update. That's also why I made sure to have the stop losses ($740 - $700) in my post.
Now my view on a larger picture, Daily Chart, is still positive this trade was based on the 60 minutes chart and previously established uptrend channel has since failed so we need to close the trade.
...again I'm still quite positive on larger trend and will update you guys again if I see a potential run-up forming.
@roydlanco, Here's the thing mate, If we break below $740 there will be multiple ST support levels at virtually every $20 to $700. Technicals is really never exact, it can fall below $740 briefly but what you need to focus on is the "trend". The importance if $740 is that if it falls below that level we might be trading at the lower channel between $680 - $740.
In conclusion, if you can tolerate the risk maybe give it $740 - 720 see if it holds but DO NOT let the losses run below $700 because that's a solid sell signal.
@roydlanco, I think you'll do fine holding if you're an investor. The technology of ETH is in my view still the best one out there for the future of Blockchain. Good luck trading !