Analysis and tips on how to trade ETH
Yesterday, the price tested the level of 1,906 three times. On its third attempt, the instrument fell to 1,890. Risk assets, including ETH, are likely to be in demand today because of the bulls who managed to stay in control of the lower limit of the sideways channel at 1,885 yesterday. A decrease in inflationary pressures in the UK and the eurozone is seen as a sign of a nearing pivot in the policies of the central banks, which is a positive factor for risk assets. Today, I will trade according to Scenario 1.
Signal to buy
Scenario 1: I will buy ETH today after the price reaches 1,918 (green line of the chart), targeting 1,933 (thicker green line). I will close long positions in the area of 1,933 and open short ones. Growth will extend if the market stays bullish. Important! Before buying the instrument, make sure the MACD is above zero and just starts moving up from this level.
Scenario 2: I will also buy ETH if the price tests the mark of 1,903 twice, with the MACD being in the oversold zone at that moment. This will limit the instrument's downside potential and lead to a bullish reversal in the market. The quote may go to 1,918 or to 1,933.
Signal to sell
Scenario 1: I will sell ETH today after the price tests the mark of 1,903 (red line on the chart), which will cause a rapid fall in value. The bearish target is seen at 1,885 where I will close short positions and buy the instrument. ETH may feel pressure if the price gets back below the 1,903 mark. Important! Before selling the instrument, make sure the MACD is below zero and just starts moving down from this level.
Scenario 2: I will also sell the instrument after the price tests the mark of 1,918 twice, with the MACD being in the overbought zone at that moment. This will limit the pair's upside potential and lead to a bearish reversal in the market. The quote may then go to 1,906 or to 1,885.
Indicators on charts:
A thin green line indicates a buy entry point.
A thin green line indicates a point where you can set a Take Profit order or lock in profits manually because the price will unlikely go above this level.
A thin red line indicates a sell entry point.
A thick red line is the estimated price level where you should place a Take Profit order or close positions manually because the quote is unlikely to fall below this mark.
MACD. When entering the market, it is important to pay attention to the overbought and oversold zones.
Important! Novice crypto traders should be very careful when deciding to enter the market. Before the release of important fundamentals, you should stay out of the market in order to avoid sharp fluctuations in the rate. If you decide to trade during news releases, make sure to always place a stop order to minimize losses. Without the order, you may quickly lose your entire deposit, especially if you do use money management but trade large volumes.
Remember that in order to succeed in the market, you should have a clear trading plan, like the one I presented above. Spontaneous decisions based on the current state of the market are a losing strategy for an intraday trader.