Ethereum: 215USD Holds the Market
Ethereum / U.S. dollar BITSTAMP:ETHUSD
The price dropped below SMAs with 100 and 200 periods, and we can say that it is a bearish signal from the 4H chart. What does it mean? It means that the market can start a new downtrend.
We can see that 215USD support stopped the downside movement. Sellers could not pass this barrier, and we got the price reversal. A new swing low, which was formed after the downside movement and the reversal will be used as the key point. If the price can break it and stay below 215USD, it will confirm the strength of sellers and the bearish trend to 200USD and 190USD as main targets.
If the price stays above 215USD support, we will have an opportunity to move upside to the main downtrend line from higher timeframes. But for this, buyers will have to break the local downtrend line and move above SMA100 and SMA200.
How to trade exactly?
If the price bounces from 215USD, it will be a possible buy signal. Stop orders must be placed below the local swing low. Profit targets should be placed at SMAs and 240USD.
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This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
Source: TW DLavrov