Taking a quick look at Ethereum’s performance, after Bitcoin smashed through the resistance zones this morning vs the US Dollar. Ethereum has been under a lot of bearish pressure vs Bitcoin and I have illustrated the bearish channel that I am watching. A break and consolidation above this channel will be a very good signal for the ETH market, but what to do till then, let us take a look at the chart.
There has been some good buying volume around the 0.0305 btc – 0.0315 btc price zone, and the sellers are stepping in above 0.032 btc to offload their recently purchased bags. Momentum is looking good for the bulls and if they can keep the RSI above 50, there could be a chance to test our short term resistance, and possibly break through it should the momentum continue to build.
Resistance in my opinion is between 0.032 btc – 0.0338 btc, and a breakout and consolidation above this zone will signal a bullish longer term trade setup for me. Until then I expect some trading action in this channel and the higher risk traders will be looking to fill longs and shorts before we go higher, if we go higher.
A break below this channel will signal disaster for ETH on the shorter timeframe, however crytpo is bullish right now and Bitcoin has already rekted those short on leverage, is Ethereum next? Patience while the market gets ready to show us the next move. Safe trades.
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.