ETH Is in a No Trade Zone
TLDR:
• Until ETH gets above the resistance trendline and the 21D & 50 D EMAs and retest the area as support, it is too risky to long.
• Until ETH loses the support trendline (again) and the horizontal 1680 USD support level, it is not a short either.
Background:
• Since June of 2022 ETH is in an uptrend.
• ETH has held an upward sloping support line since November 2022.
• During the past eight months, an oversold RSI reading coupled with a touch of the trendline proved to be a good long opportunity.
• We are now at the same situation as in the previous two lows:
1. Daily RSI is (was) oversold.
2. ETH touched the trendline.
3. ETH is below the 21D & 50D EMAs.
• However, this time, ETH closed a daily candle below the trendline, which IMO is a sign of weakness.
• IF ETH manages to get above resistance and make the same gains it did in previous times, it could go as high as 2700 USD (between the 1 – 1.272 fib extension).
My Trade Ideas:
1. ETH Long:
• Precondition: ETH breaches the resistance trendline and the EMAs and tests them as support. To be clear, as long as ETH is below the EMAs it is not a long IMO.
• Entry: 1815
• SL: Below the trendline, approximately 1755.
• TP: 1930, 2000, 2150, 2700.
2. ETH Short:
• Precondition: ETH loses the upward sloping trendline and the 1680 USD horizontal support level and tests them as resistance.
• Entry: Below support, approximately 1650
• SL: 1720
• Target: 1500 (Liquidity pool)
• Until ETH gets above the resistance trendline and the 21D & 50 D EMAs and retest the area as support, it is too risky to long.
• Until ETH loses the support trendline (again) and the horizontal 1680 USD support level, it is not a short either.
Background:
• Since June of 2022 ETH is in an uptrend.
• ETH has held an upward sloping support line since November 2022.
• During the past eight months, an oversold RSI reading coupled with a touch of the trendline proved to be a good long opportunity.
• We are now at the same situation as in the previous two lows:
1. Daily RSI is (was) oversold.
2. ETH touched the trendline.
3. ETH is below the 21D & 50D EMAs.
• However, this time, ETH closed a daily candle below the trendline, which IMO is a sign of weakness.
• IF ETH manages to get above resistance and make the same gains it did in previous times, it could go as high as 2700 USD (between the 1 – 1.272 fib extension).
My Trade Ideas:
1. ETH Long:
• Precondition: ETH breaches the resistance trendline and the EMAs and tests them as support. To be clear, as long as ETH is below the EMAs it is not a long IMO.
• Entry: 1815
• SL: Below the trendline, approximately 1755.
• TP: 1930, 2000, 2150, 2700.
2. ETH Short:
• Precondition: ETH loses the upward sloping trendline and the 1680 USD horizontal support level and tests them as resistance.
• Entry: Below support, approximately 1650
• SL: 1720
• Target: 1500 (Liquidity pool)
I still can't see a trade.