If we look at the daily chart of Ethereum , we can see that the market is going to drop lower and probably 200.00 level will be a good target for this. We don't have solid signal confirming up or down movement and that's why we must be careful with any trading signal. It's better to wait for strong levels for buying. Let's think about possible trades based on lower time frame. It's the 4H chart and we can see the down trend. When price boucned from the support zone and came back to the downtrend line, we could expect a breakout with following up movement to the resistance zone . But price reversed from the downtrend line and dropped to 260.00 level. This level can be good for opening short term trades with target at the downtrend line. Stop for such long trades must be below 255.00 level. But if you want to open long trades with the solid confirmation that we have an up trend, it's better to wait when price breaks the downtrend line and 320.00 level. Also there are 2 possible levels for buying which are more interesting. If price breaks 260.00 level, the market will fall to the uptrend line and the support zone . Buying from these levels can be more safe and profitable variant. Stop orders for long trades must be below 200.00 level and profit targets at 300.00 and near the resistance zone . Don't forget that all reversal signals must be confirmed by bullish candles or reversal candlestick patterns and RSI reversal. Only after that we should open long trades.
Jul 1
Comment: Price breaks the support level 260.00 and it falls to the uptrend line
SOURCE : https://www.tradingview.com
