FX.co ★ Ethereum: simple tips for beginners on July 10

Market overview on Friday and trading tips

Ether spiked following the tepid US nonfarm payrolls on Friday. However, a rapid rally faded away quickly. Today the token is trading quietly. The buyers may be disturbed today if the instrument returns to last week's lows, but the sellers need to work hard for that. Demand prospects for risky assets, including Ether, will be limited in the face of another rate hike by the Federal Reserve later this month. In this context, I foresee a further decline in the trading instrument. So, I would stick to trading according to scenario #1 described below.

Buy scenario

Scenario #1. Buy Ether today when the price reaches the entry point around 1,862 plotted by the green line on the chart with the upward target at 1,879 plotted by the thicker green line on the chart. In the area of 1,879, I recommend closing buy positions and opening sell positions in the opposite direction. We could predict the growth of Ether only within the sideways channel formed over the weekend. Important! Before buying, make sure that the MACD indicator is above zero and is just starting to rise from it.

Scenario #2: Buying Ether today is also possible in case of two consecutive tests of the 1,851 level at the moment when the MACD indicator enters the oversold area. This will limit the bearish momentum of the trading instrument and enable the upward reversal of the market. We can expect growth to the opposite levels of 1,862 and 1,879.

Sell scenario

Scenario #1. Selling Ether today is possible only after the level of 1,851 is updated (the red line on the chart). This will lead to a rapid decline in the trading instrument. The key target of the sellers will be 1,836, where I recommend closing sell positions and opening buy positions immediately in the opposite direction. Selling pressure on Ether will escalate if there is no demand even at current levels. Important! Before selling, make sure that the MACD indicator is below zero and is just starting to decline from it.

Scenario #2. It also makes sense to sell Ether today in the case of two consecutive tests of 1,862 at the moment when the MACD indicator is in the overbought area. This will limit the upward potential of the trading instrument and enable a downward reversal of the market. We can expect a decrease to the opposite levels of 1,851 and 1,836.

What's on the chart:

The thin green line is the entry price at which you can buy the trading instrument.

The thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.

The thin red line is the entry price at which you can sell the trading instrument.

The thick red line is the price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.

The MACD indicator: it is important to be guided by overbought and oversold areas when entering the market

Important: Novice traders in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.

Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.