Ethereum gives us a new trading opportunity. Based on the daily chart we can see that the price came back higher than 200.00 support level and broke the downtrend line which was a barrier for possible upward movement. Passing through this zone the market confirms that it’s going to move upward. Also a new swing low is higher than the previous one. It’s a signal that probably the downward movement is over and we should expect for the up trend continuation. If so, we must be ready for buying and it’s time to think about the best entry levels.
The high of the current bullish candle gives us a possible entry level. We can use pending orders for entry at 227.00 level or buy from the market when price moves above this level. Stop orders must be placed below the local swing low which is lower than 200.00 support level and the uptrend line. Profit targets must be near 300.00 and 400.00 resistance levels. If you want to buy more safely, wait for a moment when the price breaks 240.00 resistance level. After getting confirmation that the market passes through this resistance, you should buy with the same stop and profit-target levels. The trading volume for this long position can be up to 10% from your deposit and if you don’t use leverage. The final volume should depend on how many markets you trade. Also you have to know that not all trading signals can be profitable. That’s why we must pay attention to proper risk management and diversification in order to make stable profit in long term.
Profit Targets: 298.50 and 398.50
The trading signal is based on Poloniex chart.