Analysis:
A few weeks ago, I mentioned the 2 price levels to watch if ETH could not surpass the $400 level. Sure enough, the first level at $280 was hit in a matter of days. Then I warned that the $300 ceiling was next to slow any price rally. Fearing that this could happen, the next logical stop is at $240. We are just $20 shy of that mark. I would consider this a major support level.
The way to play this in my view (not advice).. Would be to take a small position at the $240 level, and if it breaks down I would hold and re-enter again on a secondary entrance back above the $240. If price does not move above that, then getting rid of the 1st position would be the way to go. Either way, $240 is an important stopping point, also for those who are Fib. fanatics this level represents (61.8% ret.) level.
Foot Note:
When analyzing this chart, you will notice the Slow Stochastics indicator. I find this indicator to be the complete indicator compared to the vast majority out there. Lets explore the terms I will be using. Also use the indicator based on its respective time-frame:
Time-Frame:
1 hour - Lasts 1 hour - Few days
Daily - Last Days - Week(s)
Weekly - Last Week(s) to Month(s)
Term used:
OB - OverBought (above 80)
OS - OverSold (Below 20)
Bullish - Above 50
Bearish - Below 50
Trend - Cross up in both channel line or Cross down in both channel line.
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