The market shows a strong uptrend. DMI and MACD lines give bullish signals. If you did not open long trades below 800.00 level, now it's better to wait for a retracement. The market looks overbought and probably we'll see a short term downward movement to one of possible support zones. There are several reasons for this. RSI confirms price reversal from 1400.00 level. MACD histogram supports downward movement. The 4H time frame gives a bearish divergence which is a trend reversal signal. The price can fall to the support zone 1 which is formed by 1000.00 support level and SMA20. From this zone the long trades should be opened based on a confirmed reversal signal. If the market drops below this zone, the next support will be a very good place for buying. The support zone 2 is formed by 800.00 support level and SMA50. Buying from this zone will be good for long term trading.
评论
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Watch for price action at the 1st support zone using lower time frames. Probably there will be reversal signals which can be used for building long positions. The market can reach the 2nd support zone.
@investa, pessimistic for a heavyweight such as ETH, but very possible fractal
hamiha
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so, its a good time to sell if we bought at $850?
Phattyoshis
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@hamiha, yes. As far I've seen, is that ETH history repeats itself as well. It does very well and run to all-time highs but the retraces as also very deep. However, due to so many new Ethereum pairings on Binance and Ethfinex, I also feel that ETH has gained some stability, so I don't see this correction going deeper than the 1005 level in support zone 1.
Nidalas
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@hamiha, Always a good time to sell when you are at 150%
A good strategy is to not sell everything, but simply slightly lower your position as we go up. If it continues up, you are still in, if it goes down, you can buy the retracement. Always identify the overall trend, which is : UP. So don't short a bullish market, but reduce your exposure
It is the principle of accumulation / distribution
@khiz, sell on profit and give fuel on support dude..
tomg10
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why do you say MACD histogram supports downward movement? its above the zero line, isnt that enough?
afterforever
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@tomg10, Look at the price chart and look at MACD histogram. See divergence? It doesn't matter that it is above zero. RSI also supports bearish sentiment. That plus obvious crash last night heh.
tomg10
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@afterforever, Thanks for the answer, but why not say divergence if that's what he meant?