Ethereum – Key Levels for The Market
Ethereum / Dollar BITSTAMP:ETHUSD
If BTC keeps the 1st place as the most boring market of March, ETH should take the 2nd place.
The difference is in SMA200 strength. When we talked about BTC , this MA could support the buyers, and the price stays above this line. As for ETH, the price bounced only one time from SMA200 and with the 2nd attempt the price breaks this support line. What’s next?
We have a market which can continue the sideways movement in the borders of 140.00 and 124.00 levels. MAs with different periods move sideways not far from each other, and it tells us about the range market conditions. The same goes about DMI indicator where ADX line is below the signal level. We have the market moving sideways and without news or other fundamental factors, this movement can be continued for weeks. Of course, there are manipulators who can have another plan for ETH.
Anyway, I think we should use the key levels like 140.00 and 124.00 as signal ones. The price action at these levels can give trading opportunities. If the price bounces from them, we will be able to use reversal signals for trading in this price channel . If the price can break above or below these levels, we will be able to use breakouts for opening buy or sell positions. As the market will move closer to the main uptrend line, sell positions will look rather risky. So, if the price breaks 124.00 support, it will be better to skip this movement but try to open buy positions based on a reversal from the main uptrend line.
As for breaking above 140.00 resistance level , it will confirm the further upward movement, and this signal can be used for buying with close profit targets at 160.00 – 165.00 resistance zone for short term trades. As for long term trading, it will be better to use this breakout and any reversals from 124.00 support or the uptrend lines. Based on the daily timeframe the market keeps the bullish structure and such type of trades look logical for such market conditions.
Source: TW DLavrov