Hey team,
I'm coming to you this evening with a nice Friday night follow up to my midweek look at Ethereum retesting daily support, in stunningly rational fashion.
In case you missed it, the higher time frame zone is just the previous all time high resistance zone that is now being retested as support.
Take a look at the daily chart below:
ETH/USD Daily:
As you can see, this is the second retest of higher time frame support this week and while it's true that the lower high that formed after the first bounce certainly makes the zone seem weak, my motto is that its support until its not.
And right now, it most certainly still is support and I'm looking to play only from the long side.
Now let's zoom in and take a look at the intraday price action.
ETH/USD Hourly:
Now that price has bounced out of the higher time frame zone, we take the last short term resistance zone that when retested as support, can be used as an entry.
As I said above, it's on until it's not.
Just make sure you're nimble enough to cut and reverse if we get a momentum move lower through the zone, followed by an instant retest of short term support as resistance.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.