Trade Recommendation: Ethereum (ETH)
To say that Ethereum (ETH/BTC) has been badly beaten against Bitcoin would be a huge understatement. At current levels of around 0.022, the market has lost over of its 82% of its value from the all-time high of 0.123799.
There’s no doubt that Ethereum is deep in bear territory. The cryptocurrency looks hopeless. Many won’t dare touch ETH/BTC at its current state.
Nevertheless, these are the exact sentiments that we often see in a market that has bottomed out. Here are the reasons why we’re considering Ethereum.
Technical analysis shows that ETH/BTC has swept the all-time low on Binance of 0.023121 and posted a fresh all-time low of 0.020138 on July 16, 2019. Many would interpret this as a bearish signal but technical indicators are telling us that a bounce is on the horizon.
For instance, the weekly RSI is flashing oversold conditions. This is the fourth time that the technical indicator flailed this signal and every single time, the market has bounced. Thus, we have the same expectation this time around.
Also, a quick look at the daily chart shows a significant decrease in volume. This may be a signal that sellers are losing ammunition. If that’s the case, buyers have the chance to pump the market as supply continues to dwindle.
The strategy is to buy on the recovery of 0.023 support. If bulls successfully retest this level as support, we can see Ethereum rallying to 0.0305. Above that, the next target is 0.038.
The process may take a month.
Weekly Chart of Ethereum/Bitcoin on Binance
Summary of Strategy
Buy: Recovery and retest of 0.023 as support.
Targets: 0.0305 and 0.038.
Stop: 0.022 after the recovery.
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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