Ethereum - Next Price Target? Bear Flag Breakdown Begins!
Hello Traders...
Here is my analysis for Ethereum.
First off just to update everyone, I am currently not in any trades. I am wary of market conditions and am waiting for BTC to show definitive directional bias.
Now onto ETH.
- ETH was recently trading in a Bear Flag formation. The formation was broken a few days ago, however price was still above the local support from the daily wick.
- Now that price has broken past local support, ETH is looking very Bearish.
But where will ETH possibly bounce?
- The next support level for ETH is at $2,750.
- Just below is major ascending trend line support at $2,695.
- Also the technical target from the Bear flag is almost exactly at the first support level. Isn't it amazing how that worked out!?
What do these 2 support lines so close together mean?
- The fact they are so close together means that there is a high probability of a bounce in that area.
- Think of support levels like a wall that you are trying to breakthrough with a sledgehammer. Now put 2 walls together, imagine how much harder it would be to breakthrough 2 walls vs one. It's the same thing for price trying to break through 2 support levels vs one.
- Also It's possible ETH could hit the first level, then wick down to the second level before getting a bounce.
- Either way we know that there is strong support in this area and the probability of a bounce is high.
When to enter a position?
***As you know nearly all cryptos follow BTC. This analysis could be negated if BTC has an erratic move. But as it stands this is how I would trade ETH.
- I would like to see ETH hit the level relatively quick, not a small move then consolidation, then another small move then consolidation.
- The quicker price drops, the bigger the bounce.
- So I'll watch for price to hit this level in the following days, more than likely I will enter a position at the first support level then add even more at the second level if it hits.
****I will post an ETH update in a couple days with take profit and stop loss.
Happy Trading *Patience is Key*
Here is my analysis for Ethereum.
First off just to update everyone, I am currently not in any trades. I am wary of market conditions and am waiting for BTC to show definitive directional bias.
Now onto ETH.
- ETH was recently trading in a Bear Flag formation. The formation was broken a few days ago, however price was still above the local support from the daily wick.
- Now that price has broken past local support, ETH is looking very Bearish.
But where will ETH possibly bounce?
- The next support level for ETH is at $2,750.
- Just below is major ascending trend line support at $2,695.
- Also the technical target from the Bear flag is almost exactly at the first support level. Isn't it amazing how that worked out!?
What do these 2 support lines so close together mean?
- The fact they are so close together means that there is a high probability of a bounce in that area.
- Think of support levels like a wall that you are trying to breakthrough with a sledgehammer. Now put 2 walls together, imagine how much harder it would be to breakthrough 2 walls vs one. It's the same thing for price trying to break through 2 support levels vs one.
- Also It's possible ETH could hit the first level, then wick down to the second level before getting a bounce.
- Either way we know that there is strong support in this area and the probability of a bounce is high.
When to enter a position?
***As you know nearly all cryptos follow BTC. This analysis could be negated if BTC has an erratic move. But as it stands this is how I would trade ETH.
- I would like to see ETH hit the level relatively quick, not a small move then consolidation, then another small move then consolidation.
- The quicker price drops, the bigger the bounce.
- So I'll watch for price to hit this level in the following days, more than likely I will enter a position at the first support level then add even more at the second level if it hits.
****I will post an ETH update in a couple days with take profit and stop loss.
Happy Trading *Patience is Key*