Trade Recommendation: Ethereum | Hacked: Hacking Finance
Our April 26, 2019 trade recommendation for Ethereum (ETH/USD) hit both targets. On May 16, the market climbed as high as $279. Those who followed the trade plan grew their investments by over 84% in less than two months.
Ethereum may have exceeded our target price by a bit but the good news is it immediately showed signs of weakness. On the day our target price was hit, Ethereum had a long wick on top of the candle’s body to indicate the presence of sellers. In addition, the market was in extreme overbought territory. These signals told us that Ethereum was overheated and it must correct before it can resume its uptrend.
Technical analysis shows that ETH/USD is likely headed to support of $200. We have this view because the rally from the rounding bottom breakout appears to be fading. When breakout rallies fade, the price often revisits the breakout point to convert the resistance into support.
$200 is very likely to hold because we have three moving averages (MA) acting as supports around that level. More importantly, these three MAs are in ideal alignment. The 50-day MA is above the 100-day MA while the 100-day MA is on top of the 200-day MA. This setup indicates that the market is in a healthy bullish trend.
The strategy is to buy on dips as close to $200 as possible. As long as ETH/USD trades above this level, it will likely rally to our initial target of $280. Take that out and the next target is $365.
The process may take less than a month.
Daily Chart of Ethereum/US Dollar on Bitfinex
As of this writing, the Ethereum/US Dollar pair is trading at $250.50 on Bitfinex.
Summary of Strategy
Buy: As close to $200 as possible.
Targets: $280 and $365.
Stop: $191
Disclaimer: The writer owns bitcoin, Ethereum, and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
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