Let's looks at the 2nd crypto market. It did not make such amazing jump as Bitcoin
, but this market had made a good upward movement before.
We have a strong bullish
candle confirming the strength of buyers. This signal can be used for confirmation of the further upward movement and the potential of Ethereum
. Big players come back and they will be able to start and support a new bullish
period in the long run.
So, what do we have now?
If you did not open a long position based on a breakout above 140.00 resistance, now it's not a good time for buying. The price is at SMA200 which acts as a strong resistance line. We have a resistance zone
between 160.00 and 165.00 levels too. Buying below the resistance zone
it's one of the common mistakes of novice traders.
We need to wait for a pullback and buy based on reversal signals from the support zone
formed by 140.00 and SMA50, SMA100. An additional variant can be based on a breakout above the resistance zone
. But you should open such long positions only if you are ready to take part in long term trading. The reason is - if the market can't pass the resistance zone
, it will be able to drop or continue the movement in sideways. Long positions with entry level above 165.00 will have stop orders below 124.00 and profit target at 200.00 and 250.00 resistance levels.
As for short and medium term trading, it will be better to wait for a pullback and buy based on confirmed reversal signals with stop orders below SMA100 and profit target at 160.00 and 200.00 resistance levels.
If we look at the indicators, they support buyers. DMI is bullish
line moves upward. It tells us that buyers become stronger. RSI
supports further upward movement.