Ethereum Requires More Patience to Trade

Ethereum, like Bitcoin, has made a decisive movement. Analyzing Ethereum however, gives us further insights into what we can expect from Bitcoin following this pump, and how we can use this information to identify profitable trade setups for both assets.

Ethereum has pumped up to a Daily Supply Zone, just like Bitcoin. The current resistance level to break on my chart is $1742. If Ethereum is able to hold above this level, our next target will be the Daily Bearish Order Block that is above us, stretching from $1800 - $1880.

I am currently long ETH, and my take profit zone is inside that Bearish OB range.

Notice that ETH, unlike BTC, has already backpedaled and filled the Fair Value Gap it created on it's pump up. Normally, this would be an opportunity to long, but because we are anticipating the same reaction from Bitcoin: backpedaling to fill it's Fair Value Gap, this would indicate that ETH actually has more room to move down.

The next level of Support we would like to see ETH hold is essentially my entry zone for my current trade, approximately $1666.

That's where our current 50DMA is sitting, which we would expect to act as Support not Resistance this time around.

Because the Risk to Reward for shorting ETH down to those levels is not optimum, I don't recommend that position.

Therefore, the two setups I'm waiting for on ETH is the re-test of the 50DMA to long, and the breakout of $1742.