While on the intra-bar price action on ETH has gotten pretty excited above the 0.786 it is still worth considering that ETH has not completed any bars above the 0.786 since the breakout and that at a moments noticed much of the current price action above the main 0.786 PCZ could later find itself being filtered out of the Renko charts as a whole depending on how many Average True Ranges above the 0.786 PCZ ETH possible move.
Based on the fact that the current candle is simply still in the projection phase I'd caution longs here and remain accumulative of longer dated puts. There is also a 2x leveraged ETF of ETH called ETHU which has OTM monthly call options trading at 20-40 dollar premiums. I'd consider farming off of those premiums in the form of Bear Vertical Spreads as a way to hedge off the costs of holding the long puts.
Overall, we are still trading at the PCZ of the Bearish 5-0 which seems to also be in the similar shape of a Bearish Head and Shoulders pattern; the measure move of which could take ETH down to around $355 upon the break of $1,600
Based on the fact that the current candle is simply still in the projection phase I'd caution longs here and remain accumulative of longer dated puts. There is also a 2x leveraged ETF of ETH called ETHU which has OTM monthly call options trading at 20-40 dollar premiums. I'd consider farming off of those premiums in the form of Bear Vertical Spreads as a way to hedge off the costs of holding the long puts.
Overall, we are still trading at the PCZ of the Bearish 5-0 which seems to also be in the similar shape of a Bearish Head and Shoulders pattern; the measure move of which could take ETH down to around $355 upon the break of $1,600
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.