Trade Recommendation: Ethereum Classic/Ethereum
The Ethereum Classic/Ethereum pair’s bull run started on November 10, 2017 when the market breached resistance of 0.045. In two days, the market went as high as 0.06977585. That’s a 55% increase in value within 72 hours. The rapid ascent was exploited by breakout traders as they immediately took profits. The market retreated back to 0.045 on November 23 where it bounced.
Unfortunately, the bounce was short lived as the market created a bearish double top structure on November 28 when it failed to close above 0.07. Participants who saw this pattern started dumping shares. On December 13, the market broke 0.045 which effectively reversed its trend.
Technical analysis reveal that the market is establishing support at 0.0275. In fact, the pair touched on this support level seven times this month already. The more participants defend this support, the stronger it becomes as more buyers hold more positions at that price. In addition, the decline in volume during the last five days indicates that sellers are losing ammo.
The strategy is to buy as close to 0.0275 support as possible.
Take note: the market may attempt to create a false break down just to shake out weak hands. Extend your stop to 0.025 to avoid a bear trap. Preserve this level and we have a target at 0.045.
Daily Chart of Ethereum Classic/Ethereum on Poloniex
As of this writing, the Ethereum Classic/Ethereum pair is trading at 0.02755615 on Poloniex.
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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