Hi there!
Here is an advanced technical analysis for ETH/USD based chart patterns, PLUS a ready-to-use trading strategy and a set of trading signals.
Keep reading and you’ll get exact instructions on how to trade ETH/USD and achieve profitability!
The medium-term trend for ETH/USD is DOWNWARD.
After a recent 20% downward correction on Feb 19th, the price broke through below the trendlines of an ascending trend channel. So, technically, we received a trend reversal signal, and a medium-term TREND is DOWNWARD.
In fact, now is an excellent opportunity to enter SHORT. Watch for the opportunity to enter short in the range of $129-135.
These levels represent the tops of two possible patterns of descending trend channels, and the downside potential constitutes from 11% to 33% over the next week (depending on how the price will evolve).
In particular, the next strong resistance level is set at $145. This resistance level is a local extremum and is significant. It should be used as a Stop-Loss price.
The next strong support level is set at $122. If the price breaks through this support, the ensuing price decrease is expected to be significant and volatile. Based on this analysis, in case the $122 is broken, the price is likely to drop at least to the next significant support level at $110.
These conclusions are confirmed by the analysis of chart patterns and trend channels, as presented on the chart.
According to this strategy, we have a 33% downside potential, which can be magnified to 330% by using a moderate (10X) level of leverage. The Stop-Loss should be set at $145, which is a strong resistance level. The risk-reward ratio is 1.3x.
So, here is a brief summary of trade signals for ETH/USD:
- The base-case scenario is a continuation of a DOWNWARD TREND. Reversal is NOT probable at this point.
- Enter SHORT at $130
- Set a Stop-Loss at $145
- Set a Take-Profit at $110 or $122 (depending on how the price will evolve, according to the chart)
- Forecasted P&L: +$25 or +33% (or +330% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 1.3x
Trade signals are confirmed by the following technical analysis tools:
- 10-Days Bollinger Bands indicator. The price is BELOW the MA and the MA is DECLINING. The signal is SELL.
- Fast Stochastic oscillator (6,3,3). Stochastic is approaching an oversold range, which is a short-term bullish signal. You should wait until the price adjusts upward to $130-$135 and when %K moves from above the %D line to below it, and then enter short / sell ETH/USD.
- Chart patterns (trend channels) indicate a SELL signal.. We got two clearly formed downward trend channels. The trendlines of these channels slope in a downward direction, and the ETH price is making lower lows and lower highs. This is a continuation chart pattern that confirms the downtrend signal. The targets are clearly identified, and presented on the chart for your convenience.
I hope this analysis was useful to you.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates in the future, including any confirmatory and trend reversal signals according to this trading strategy. This will allow you to stay on top of the current Ethereum trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
Here is an advanced technical analysis for ETH/USD based chart patterns, PLUS a ready-to-use trading strategy and a set of trading signals.
Keep reading and you’ll get exact instructions on how to trade ETH/USD and achieve profitability!
The medium-term trend for ETH/USD is DOWNWARD.
After a recent 20% downward correction on Feb 19th, the price broke through below the trendlines of an ascending trend channel. So, technically, we received a trend reversal signal, and a medium-term TREND is DOWNWARD.
In fact, now is an excellent opportunity to enter SHORT. Watch for the opportunity to enter short in the range of $129-135.
These levels represent the tops of two possible patterns of descending trend channels, and the downside potential constitutes from 11% to 33% over the next week (depending on how the price will evolve).
In particular, the next strong resistance level is set at $145. This resistance level is a local extremum and is significant. It should be used as a Stop-Loss price.
The next strong support level is set at $122. If the price breaks through this support, the ensuing price decrease is expected to be significant and volatile. Based on this analysis, in case the $122 is broken, the price is likely to drop at least to the next significant support level at $110.
These conclusions are confirmed by the analysis of chart patterns and trend channels, as presented on the chart.
According to this strategy, we have a 33% downside potential, which can be magnified to 330% by using a moderate (10X) level of leverage. The Stop-Loss should be set at $145, which is a strong resistance level. The risk-reward ratio is 1.3x.
So, here is a brief summary of trade signals for ETH/USD:
- The base-case scenario is a continuation of a DOWNWARD TREND. Reversal is NOT probable at this point.
- Enter SHORT at $130
- Set a Stop-Loss at $145
- Set a Take-Profit at $110 or $122 (depending on how the price will evolve, according to the chart)
- Forecasted P&L: +$25 or +33% (or +330% per 1 Lot with 10x Leverage)
- Risk/Reward Ratio: 1.3x
Trade signals are confirmed by the following technical analysis tools:
- 10-Days Bollinger Bands indicator. The price is BELOW the MA and the MA is DECLINING. The signal is SELL.
- Fast Stochastic oscillator (6,3,3). Stochastic is approaching an oversold range, which is a short-term bullish signal. You should wait until the price adjusts upward to $130-$135 and when %K moves from above the %D line to below it, and then enter short / sell ETH/USD.
- Chart patterns (trend channels) indicate a SELL signal.. We got two clearly formed downward trend channels. The trendlines of these channels slope in a downward direction, and the ETH price is making lower lows and lower highs. This is a continuation chart pattern that confirms the downtrend signal. The targets are clearly identified, and presented on the chart for your convenience.
I hope this analysis was useful to you.
If you like it and would like to receive future updates - Please, follow me on TradingView!
If you follow me, I guarantee you will receive timely updates in the future, including any confirmatory and trend reversal signals according to this trading strategy. This will allow you to stay on top of the current Ethereum trend and hopefully maximize your profits!
If you agree, please, Like this idea - This would be the best feedback and encouragement for me!
To your trading success,
Monfex!
