Woah Whats going on with Ethereum - a Technical Perspective

Sheesh, just no reprieve from the punishment ;-)

Above is the daily chart of ETH BTC -- its currently sitting on a trendline and just below the 50 day moving average. To buy here would be risky and you would potentially be catching a falling knife. Not good - except that the moves are smaller and smaller and the volume is trending down. This is indicative of price consolidation.

So, suppose you buy here, this could be quite profitable if it bounces or damaging to your portfolio if it continues to fall.

So what do you do? We dig deeper into the intraday time frames for a little more direction. First and foremost, however, you will want to wait for the dip buyers to come in - don't be a hero.

Notice how the stochastic RSI (a momentum indicator) is signalling downtrend on the 4hour time frame, but the 1hour is showing oversold. Kind of contradictory signals, hey?

We look at the 1hour and notice it has thus far held the trendline. We need a powerful move to turn the 4hour chart bullish, otherwise there is just a quick day trade opportunity for the risk tolerant.

What I would be looking for is volume to start coming in on the 30minute time frame to drive the 1hour chart into a full stochastic cycle for such a trade.

So, this isnt a mid ground trade, it is what is referred to a Risk Reward or RR - if one is risk tolerant, diligent and uses a stoploss - in other words their trading accumen. They would start a position here on confirmation, a candle stick wick with some volume that indicates dip buyers are stepping in.

Ethereum USD is currently trading at $245.

Resteem . Upvote .

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Not Trading or Investment Advice