Trade Recommendation: Ethereum
Our May 21, 2019 trade recommendation for Ethereum (ETH/USD) hit its initial target. On June 21s, the cryptocurrency climbed as high as $297.71. Those who stuck to trade plan grew their investments by over 30% in one month.
Our second target of $365 for Ethereum still applies. However, we are releasing a fresh trade recommendation so those who took profits at $297 can buy the pullback. If you have yet to hop on this train, the next several days should offer you a solid entry point as Ethereum is flashing overheated signs. The breakout rally appears to be fading as we’re seeing a bearish divergence and overbought signals on the daily RSI.
Technical analysis shows that ETH/USD has broken out of the large cup and handle pattern on the daily chart. This happened on June 21st when the market breached resistance of $280. The breakout is what’s fueling the cryptocurrency’s current rally.
As mentioned, Ethereum is ripe for a short-term correction. Ideally, the cryptocurrency retests and converts the previous resistance of $280 into support. We want to see it build a new base above that level before targeting $365.
The strategy is to buy on dips as close to $280 as possible. As long as ETH/USD trades above this level, it will likely rally to our range high of $365. We’ll revisit the market once it closes above that price level.
The process may take less than a month.
Daily Chart of Ethereum/US Dollar on Bitfinex
Summary of Strategy
Buy: As close to $280 as possible.
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.
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