In the short term, we try to find a bottom here. ETH is approaching the .728 fib line. Naturally we should find support around this area. BUT, a harsh sell-off of Bitcoin could lead ETH DOWN TO AS LOW AS $300.
ETH is as hell guys. But unfortunately, this is the cycle of the crypto market. It's happened historically several times to most older coins, and this is just the first time ETH will go through it. Parabolic growth = 70-80% contractionary periods.
So, in this particular trade, I expect ETH to go up for this C wave, but I expect the C wave to be truncated. There are many resistances in this area, and I'd only target a swing high if you were to go long here. The 2 hour is showing a little bit of a need to go up.
The short is actually pretty conservative, in having faith that the bulls can hold their ground to previous supports. So have faith in indicators, if the indicators tell you it can go lower, then trust it. Overall, ETH is due for a big jump after the next fall. So I'm waiting just to see when that might be, because I want a part of it.
Good luck! Ask me any questions if you have any.
ETH climbed to the top of the channel resistance. Hope you all have been patient. There was no sign of reversal on the resistance lines, so we stayed out of the trade. If we happen to climb above this resistance (which we shouldn't), then expect rejection in that green zone, for a beautiful short, or taking of your long-profit.
It hit the green box then this happened. WTF??? What dickhead did this??
I'm very bearish on this market and haven't really been looking for long positions because it is just easier and safer to trade with trend. Here's a look at the daily chart for Ethereum, along with BTC, I expect another low to come in here before we can see an imminent uptrend to occur. I haven't quite been active in any trades with Ethereum, because I still want to get a feel for it's price action, like that I have of BTC. But I will update with what I'm seeing in the short-term and make a trade based off of that. But a short is definitely on its way with this one.
Here is the 3 hour chart. We're kind of forming a funky ascending wedge here. But I'm not sure if we can touch the top of the yellow resistance for a few reasons that the lower time frames show. We're kind of channeling here. So it's kind of hard to find a target for the next short. I will update in a few moments here on the lower time frame to see if we may be able to hold this support and climb a bit higher before we consider entering a short.
So I'm contemplating entering the short right now because we closed with a bearish divergence on the 1 hour, therefore we can draw a resistance at the top of the last two highs, I don't think it gets over that resistance. But BTC can kind of motivate it to do so if it climbs a bit higher. I'm only targeting $362 for now, but I can only think that if we hit it again, we will fall through the cracks. I'll actually try to activate the trade on this one if I do decide to enter soon. For now, everything looks bearish.
So here's the thing with Ethereum. I spot this descending wedge on the 10 minute RSI where the previous resistance is now support. There is also a secondary resistance line that could carry ETH to the top of white resistance around $440. Even though indicators are showing this run to be exhausted. Something is a bit fishy here.
There is a huge sell wall at $424 for ETH. I think what I'm going to do is possibly set a stop loss on my small order right behind it. And see what it does. I don't want to trap myself in a corner with ETH going up an extra $15. BTC is also in the same situation where I think it has another run up to $7k. We'll see how this goes, but I am not automatically setting a sell order at $425 anymore. I will wait and see what goes on.
Indicators do not support this count. But a bullish run with Bitcoin could lead Ethereum to gain traction and move to $438 to complete the wedge. Because we haven't dropped and we continuously test $424, I think it's possible we push up. The indicators don't necessarily support this like I said before. I've removed my shorts and am waiting for a different entry. I'd either like to short at the $438 region or short on confirmation of a drop. I don't mind the tiny loss I took, because the reward in the end is much greater. So that's why I'm looking for re-entry. And if it does fall from here, then I don't mind missing out on an extra percentage point or so by having a late entry here.
I either want more confirmation on a fall, or the price to rise in order for my to feel comfortable shorting. Right now, I'm not comfortable.
Critical moment for ETH on the 30. Usually descending triangles are bearish formations. But I see bullishness in the indicators. If we fall it is possible that that is the beginning of our trade. We'll see what happens
Do you guys see now why I decided to remove my order at $425? We had been pressing $424 for so long, when we finally broke it, volume rose and we have been rallying since. I've moved my short order down to about $436, just to possible confirm the order going through.
So we are still going to manage our shorts along the way and aim for small targets, but in the end I'm targeting $230. Chart literally explains it all. If Bitcoin falls to where I'm expecting it to, then this would be just as likely. Probably the best RR you will see in a while with a higher probability trade. Trade with the trend guys, its easier and much less nerve wrecking that way.
I entered the trade at 431.97. We can't guarantee that we get a 5th wave up. 5th waves aren't always guaranteed in corrective waves. Sometimes you just get an ABC. To me, Its okay if it goes to $436 or higher. I can always add if it does. But I like this as a base position.
Like seriously. I have so much confidence in a big market drop that I opened a $15k short on BTC when it was at $6750 and never closed it. I just wanted to let you all know that, BECAUSE if these coins take off, you will know what type of loss I'd incur. And that my confidence in this trade backs that (idiotic) decision up.
ETH is extremely overbought on stoch. The Daily MACD histogram is VERY high. There are the same indications of a fall (But EVEN WORSE), NOW than their was the other day. I actually shorted ETH at $495. I expect a healthy correction here, and based on wave count, we should reach another short-term high of $540. BUT, based on indicators, we may NOT have the strength to do that, EVEN though we broke the long-term resistance. We need to see that resistance line become a support line now. If we fall back through it, then I'd begin to be a bit concerned for the bulls. We are OVERBOUGHT. So be cautious.
Small update. ETH just showing potential to go up here for another little run. Capping off at sub $520.