Ethereum USD - A trader's perspective
In trading preparation is one of the the keys to profitability. You might argue some of the people you know have no trading knowledge and done very well. When the market goes through great volatility like we have seen in the past couple of weeks, that might not necessarily be true specially if they were not in much earlier. A seasoned trader is skeptical of anyone's opinion; he or she might listen to see if it offers validity to counter their own take on the market. Why do I mention this? Every trader's goal and timeframe is different, and is very hard to find two traders who would do exactly same in the same situation.
I've noted on yesterday post here that in order to start turning things around, ETH bulls needed to break and hold above 280 (green line in middle of chart). 280 resistance area and bulls were not able to push above. Is this bad news? We should find out today. Breaking below the blue trendline can point things south quickly.
I've zoomed into the 1-Hr chart for clarity. By breaking below the blue trendline, bears are making lower lows. And since we have been in compression mode for sometime now, and bulls are not getting paid, therefore will start looking for a way out (sell), that's when the lower trendline will be resistance instead of support. For clues where it might be headed if this happens, I've drawn up S1, S2 & S3 areas. If looking to buy, skip S1 and wait until S2 around 200. First touch S2 should give solid floor to land on, BUT if BTC is crashing on a vertical downfall, then hold off and wait until it recovers before entering. From what I can see, a S2 Long should give at least 10-15% return. I'm being conservative, but this trade would be more of a swing trader lasting at minimum 1-2 days. The way to play it is to accumulate around this buy area, and sell 1/2 once it reaches target, while moving Stop Loss to entry to lock-in profits. The 1/2 rest should be left alone and wait to see if it the trend does reverse.
I actually use these charts for my own trading :) I'm giving you a perspective from a trader's viewpoint, and hopefully this helps any new traders wanting to deepen his or her knowledge. Feel free to comment or give me your opinion, and /or let me know how else I can improve my posts.
I'm still working on my research on steem coin, as I am planning to invest (not trade) but need to understand it a bit more. Will share it when ready.
Until the next one, happy trading.
I bought some ETH earlier today.
Seeing how the EOS-plays out, it may create some demand....
Thanks for the heads up about EOS. I haven't read much about it, hope it does create demand.
On my side, I am still waiting for movement, as I trade with momentum. Looking at BTC chart, there is a potential for the big move coming soon (today)
Needs to break red line and hold, that should give ETH a huge boost :)
nice :) good to have technicals aboard. seeing some volume now.
So far 700,000 ETH have gone in to EOS.
With 45,000 only today.
I am hoping for a drop in daily ETH going into EOS, as every day there will be distributed 2000000 EOS, of the total daily contribution.
But i have my doubts, so that my main reason for being bullish on ETH.
So far i think 60,000 ETH have gone back to market... Not 100% sure, but checking the EOS-owner at etherscan shows transactions that can under-build this idea.
Exciting day, less see what happens!
Interesting take on your thinking, I have more to learn about the inside workings from people like you who provide good hypothesis :) I see you also track volume, which to me is also tell tale sign of where money is going. Follow the volume (money)!
A question if you don't mind @bymma: if volume drops in daily ETH going to EOS, how do you reason it is a case for being bullish? Maybe the caffeine from my coffee hasn't kicked in and unable to connect the dots, having trouble understanding :)
Thank you for that! I also appriciate your TA!
My main reason for being bullish on EOS is its potential and popularity.
The people behind it created steemit. EOS's main features is making cryptocurrency more available for the public.
With less coding, and smart contracts.
The potential is that you could create smart contracts very easy. For services, and brick and mortar businesses. With EOS you could automate anything from payment to paychecks.
The EOS price is very volatile, after this days contribution the dump was almost 30 %, and it bounced back up.
The price at bitfinex is (4,73 $), which is less than what people paid in daily ICO (6,01 $ )
So in short term i see a raised floor on the price.
(In time inflation will take its toll on the price, with 1000.000.000 as total.)
30% dump wow what a wild ride, that means I need to look into EOS :) thanks for the explanation! -cheers
hehe yes its down to around 3 now.
Not sure about how to play it. I did not partake in the latest ICO, because of the high volume, so for now im just holding the ETH waiting for a decent entry. :) Cheers!