Trade Recommendation: Ethereum
Our March 9, 2019 trade recommendation for Ethereum (ETH/USD) hit the initial target. Those who followed the trade plan grew their investments by 30% when the market climbed as high as $168.50 on April 2nd.
Now, the second March 9th target price of $250 is still on even though Ethereum is currently correcting. Those who are still in the trade can either buy this dip or move their stop loss up to protect their gains. On the other hand, those who missed the chance to buy between $130 to $135 can exploit this pullback to enter Ethereum.
Technical analysis shows that ETH/USD is about to flip resistance of $146 into support. We have multiple reasons to support this view. First, Ethereum refused to even touch this level on April 25th when the market dropped to as low as $148.88. This is a good signal because it tells us that buyers are front-running people who are waiting for the market to drop to an obvious support area.
With this price action, Ethereum managed to stay above the diagonal support that has kept the market’s uptrend intact. On top of that, the 200-day moving average (MA) and the 100-day MA are crawling around $146. They will act as additional supports that will help keep ETH above $146.
The strategy is to buy on dips as close to $146 as possible. As long as ETH/USD trades above this level, it will likely rally to our initial target of $162. Take that out and the next target is $250.
The process may take less than a month.
Daily Chart of Ethereum/US Dollar on Bitfinex
As of this writing, the Ethereum/US Dollar pair is trading at $158.48 on Bitfinex.
Summary of Strategy
Buy: As close to $146 as possible.
Targets: $187 and $250.
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.