Ethereum How to Trade

The market shows a strong uptrend. DMI and MACD lines give bullish signals. If you did not open long trades below 800.00 level, now it's better to wait for a retracement. The market looks overbought and probably we'll see a short term downward movement to one of possible support zones. There are several reasons for this. RSI confirms price reversal from 1400.00 level. MACD histogram supports downward movement. The 4H time frame gives a bearish divergence which is a trend reversal signal. The price can fall to the support zone 1 which is formed by 1000.00 support level and SMA20. From this zone the long trades should be opened based on a confirmed reversal signal. If the market drops below this zone, the next support will be a very good place for buying. The support zone 2 is formed by 800.00 support level and SMA50. Buying from this zone will be good for long term trading.

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Watch for price action at the 1st support zone using lower time frames. Probably there will be reversal signals which can be used for building long positions. The market can reach the 2nd support zone.