Trade Recommendation: Monetha/Ethereum

The Monetha/Ethereum pair (MTH/ETH) flashed signs of bullishness on December 23, 2017 when it took out 0.00025 resistance. The breakout had such a strong momentum that the pair went as high as 0.000598 on January 5, 2018. In about two weeks, the market grew by almost 140%. Breakout players were happy to milk the ride as they took profits.

As selling became the theme, the pair pulled back to as low as 0.0003105 on January 10, 2018. Bottom pickers bought the higher low, but the buying produced nothing more than a dead cat bounce. MTH/ETH generated a lower high of 0.0005 on January 11, and that gave bears all they leverage they needed to take control.  

Technical analysis show that Monetha/Ethereum has broken below 0.00025 support on January 29. Below this level, the next firm support is 0.00012. So far, it appears that the market is headed to that price point, especially after it generated a lower high of 0.0002333 on February 20.  

The strategy is to buy as close to 0.00012 as possible. This is the market’s strongest support in its brief history. If bulls continue to defend this level, the market will likely consolidate for some time before climbing to our target of 0.00025. The process may take more than a month.

Daily Chart of Monetha/Ethereum on Binance

As of this writing, the Monetha/Ethereum pair is trading at 0.00017695 on Binance.

Summary of Strategy

Buy: As close to 0.00012 as possible.

Target: 0.00025

Stop:  0.000105

 

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.

Kiril is a CFA Charterholder and financial professional with 5+ years of experience in financial writing, analysis and product ownership. He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance. Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.