Trade Recommendation: Ethereum
Our Ethereum (ETH/BTC) trade recommendation on December 20, 2018 hit both targets. The first one was hit on December 23 when the market climbed as high as 0.03315. The second one was achieved on December 29 when ETH/BTC rallied to 0.037441. Those who followed the trade recommendation grew their investments by almost 40% in a week and a half.
While the pair overshot our target, we were confident that it will eventually pull back. By January 5, 2019, the market flashed signs of weakness. The daily RSI printed a bearish divergence. On top of that, the market respected the 200-day moving average as a resistance. With these technical signals, Ethereum rewarded our patience by correcting.
Now, we have the chance to buy on dips.
Technical analysis shows that Ethereum is respecting our range midpoint of 0.03264. The market’s ability to stay above that level for over a week tells us that participants are trying to carve a bullish higher low setup. They are in a good position to do so as the daily RSI is now far from overbought territory.
In addition, we spotted a golden cross as the 50-day moving average just crossed above the 100-day moving average. Both of these technical indicators are acting as support that will help keep Ethereum trading above 0.03264.
The strategy is to buy as close to 0.03264 as possible. As long as Ethereum stays above this level, it will likely rally to the range high of 0.04. Take that out and the next target is 0.0462.
The process may take less than a month.
Daily Chart of Ethereum/Bitcoin on Binance
As of this writing, the Ethereum/Bitcoin pair is trading at 0.032747 on Binance.
Summary of Strategy
Buy: As close to 0.03264 as possible.
Targets: 0.04 and 0.0462.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.