Cryptocurrencies have been declining in recent weeks. Many associate this with the closure of positions after the strong rally in the past few months. In addition, the governments of many countries are preparing bills to regulate the circulation of crypto coins.
This bearish scenario means that it is best to sell in the market, especially in Ethereum.
The chart shows that there are three waves (ABC) in Ethereum and wave A illustrates the buying pressure last week. Based on Price Action and Stop Hunting strategies, traders can set up short positions to the 61.8% and 50% retracement level of 4295 and 4400. Stop loss could be placed at 4700, while take profit could be set on the breakdown of 3880.
Good luck and have a nice day!