Ethereum Price Analysis

ETH/USD

Traders who went long at $317 with a stop loss of $278 on our recommendation had to face a loss. In hindsight, it looks like we purchased at the highs of the range and sold off at the lows of the range.

However, we had intended to buy on a breakout of the range. As the range had been building for a few days, we believed that it would have enough force to carry it higher. Therefore, we didn’t recommend waiting for a close above the range to initiate long positions.

Similarly, on the downside, we’d expected that once the cryptocurrency broke out, it wouldn’t return to the lows of the range. Nevertheless, Ethereum proved us wrong on both fronts.

So, how can we trade Ethereum now?

Currently, the cryptocurrency is trading close to the center of the range. We don’t want to enter a long trade unless Ethereum breaks out and closes above $317. We may miss out on a few points, but at least we won’t be caught in these fake breakouts and breakdowns.

We shall keep an initial stop loss of $278 only, because, we don’t expect prices to fall back below the range, once it breaks out and closes above it.

Ref: investing