Tips for trading ETH

A test of 1,850 on Friday occurred at a time when the MACD indicator was in the positive zone. It was a confirmation of the correct entry point into long positions. However, the pair was unable to resume an upward movement. Traders had to activate Stop loss orders. Ether is likely to remain in a narrow sideways channel, which indicates low demand during the period of uncertainty about what will happen next with risk assets. Speculators doubt that the Fed will announce the end of the tightening cycle in September. Given that the US dollar is now rallying as a safe haven asset again, the outlook for Ether is quite dismal. As long as it is trading above 1,815, bears will hardly regain the upper hand. Demand for cryptocurrencies may return if there are new drivers. Therefore, I am going to trade today according to scenario No. 1.

Scenario No.1: you can buy ETH today when the price reaches 1,848 (the green line on the chart) with the prospect of a rise to 1,864 (thicker green line on the chart). At 1,864, I recommend closing long positions and opening short ones in the opposite direction. Ether is likely to advance only if it settles at intraday highs with the likelihood of a rise to highs of last week. Important! Before buying, make sure that the MACD indicator is above the zero mark and it has just started to climb from it.

Scenario No.2: you can also go long today in the case of two consecutive tests of 1,841 at a time when the MACD indicator will be in the oversold area. This will limit the downward potential of the trading instrument and could lead to a market reversal. It may advance to the levels of 1,848 and 1,864.

Sell signal

Scenario No. 1: it is possible to sell Ether today only if the price touches 1,841n(the red line on the chart), which may lead to a rapid decline. The key level is located at 1,826 where I recommend exiting sales as well as opening long positions in the opposite direction. The pressure on Ether will increase if there are no buyers at intraday highs. Important! Before selling, make sure that the MACD indicator is below the zero mark and it has just started to dip from it.

Scenario No. 2: you can also sell ETH today in the case of two consecutive tests of 1,848 at a time when the MACD indicator will be in the overbought area. This will limit the upward potential of the trading instrument and lead to a market reversal. The instrument is projected to slide to the levels of 1,841 and 1,826.

The thin green line is the entry point where you can buy a trading instrument;

The thick green line is the estimated price where you can place a Take Profit order or lock in profits manually as ETH is unlikely to rise above this level;

The thin red line is the entry point where you can sell the trading instrument ;

The thick red line is the estimated price where you can place a Take Profit order or lock in profits manually as the price is unlikely to decline below this level;

The MACD indicator. When entering the market, it is important to pay attention to overbought and oversold zones.

Important. Novice traders need to make very careful decisions when entering the market. Before the release of important fundamental reports, it is better to stay out of the market to avoid losses due to sharp fluctuations in the exchange rate. If you decide to trade during the news release, always place Stop Loss orders to minimize losses. Without placing Stop Loss orders, you can lose the entire deposit very quickly, especially if you do not use money management but trade in large volumes. Remember that for successful trading it is necessary to have a clear trading plan, following the example of the one I presented above. Relying on spontaneous trading decisions based on the current market situation is a losing strategy of an intraday trader.