Ethereum: Breakout above 500$ and How to Trade
ETHUSD Perpetual Contract BYBIT:ETHUSD
First of all, I want to show you the bullish setups and entry points which you had to use for your long trades. If you could have minimum knowledge and understanding of how to trade based on breakouts and reversal signals in trend market conditions, you would use all that setups.
When you start a discussion that the market is strong and it is time to buy, I want to tell you again that it is a huge mistake of a newbie trader.
The resistance zone should be used to exit from profitable long trades, but not for buying. When the price is at resistance, you can fix profit, open short trades, or do nothing. Below the resistance, you have no right to open long trades.
The price is going to break 500$ resistance. We need to wait for a close price of the daily candle. If the breakout is confirmed by the close price above 500$, we should be ready to see a further upward movement toward 550-570$. The next targets can be based on round numbers as 600$, 700$, and 800$.
I would search for bearish setups in the hourly timeframes and maybe bullish setups for short term trading. For this, I would use 5m, 15m timeframes, and reversal signals from SMA50 and SMA200.
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