ETH Stabilizes at 2945, New Target at 3400Trend Analysis
The main view of this trade idea is on the 2-Hour Chart. The Cryptocurrency Ethereum (ETH) had hit some resistance around the 3330 price level and declined 11.6% towards 2945. At that point ETH tested support and held and eventually broke above the downward trendline highlighted in red. Expectations are for the cryptocurrency to rally towards 3400, 5.7% away from current price levels (at the time of publishing). This hypothesis will be negated if ETH breaks below 2945.
Technical Indicators
ETH is currently above its short (25-MA), medium (75-MA) and long term fractal moving averages. Based on this, the uptrend remains intact. The RSI is above 50 and is trending higher. Also, the KST is in a positive zone. Moreover, there are buy signals on multiple timeframes for ETH, suggesting further bullish price movements in the short, medium and long term.
Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 2945 price level and a target of 3400. This produces a risk-reward ratio of 0.63. Given the low risk reward ratio, it a small position size should be utilized.
Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in Ethereum.
