Quick report on the Ethereum market versus Bitcoin as we have some good price action, lets take a look.
This is a great example of a possible breakout scenario that often eludes newer traders. Notice how the candlesticks were getting compressed in a sideways trend as the bulls and bears battled it out. We can now see that the bulls have bought enough ETH to get us over our trend line.
This is where the difficult part comes in, should the buying pressure cease here, or more bears decide to come to the party, this will most likely be a “fakeout” instead of a breakout. How would one know the difference?
The short answer to that question is to keep an eye on the momentum. The volume should increase with the prices, a sudden drop in volume could signal the start of a correction and possibly a fakeout.
Traders usually enter with a tight stop loss to minimize the loss should it be a fakeout. I expect good things should the Ethereum price stay above 0.0772. Safe trades y’all!