Taking a quick look at the Ethereum market vs Bitcoin, which has been in a strong bearish trend against BTC, until mid September where we saw the market starting to move sideways. There is a slight bullish channel developing. This could be a bullish or bearish signal and the bulls and bears will battle it out before we get more clarity.
This is what I like to call a “attempt at finding bottom”, what that means is that the next bout of buying or selling volume will determine the future direction for the market. This kind of channel could be seen as a bear flag, or a possible market bottom forming. Should prices fail to stay in the channel there will be more selling action.
Support on the short term for me is at 0.0337 btc and I will look to this price level to signal another short trade on the market. Should 0.033 btc also fail to act as support I would expect a possible sell-off on the market and perhaps a retest of 0.031 btc – 0.03 btc.
For possible long trade setups I am looking toward the top of the channel to signal the possible breakout, higher risk trade setups include buying up long positions in the short term support zone, with tight stop-loss to avoid the drop, should it occur.
Some traders will be looking for the bounce and possible bump & run breakout trade setup here, if momentum is in favor of the bulls, a break above 0.035 btc – 0.036 btc could signal a push to the 0.04 btc resistance zone. A breakout above 0.04 btc should summon quite a bit of fomo in the market. Safe trades.