Overview of yesterday's market and trading tips
The test of the 1,792 level coincided with the indicator being in the negative zone, which confirmed the correct entry point for selling Ether. As a result, the price fell to the support area of 1,774, where I advised taking profits. Ether's sell-off continued today during the Asian session. The second largest cryptocurrency by capitalization weakened in parallel with Bitcoin. ETH buyers missed 1,815. This failure has resulted in exactly what we are now seeing on the chart, I have repeatedly warned about this. And although Ether has fallen significantly in value, there is no need to rush to build up long positions. It is best to bet on a further fall of the trading instrument, based on scenario No. 1.
Buy signal
Scenario #1: Ether can be bought today after the price reaches the entry point around 1,707 (green line on the chart) with a target to rise to the level of 1,751 (thicker green line on the chart). In the area of 1751, I recommend exiting long positions and opening short positions in the opposite direction. It is unlikely that Ether will grow today, especially after such a large sell-off, which swept away quite a lot of stop orders. Important! Before buying, make sure that the MACD indicator is above zero and is just starting to rise from it.
Scenario #2: You can also buy Ether today in case of two consecutive tests of the price of 1,677. This will limit the downward potential of the trading instrument and lead to an upward reversal of the market. We can expect growth to the opposite levels of 1,707 and 1,751.
Sell signal
Scenario #1: Ether can be sold today on the condition the level of 1,677 has been updated (the red line on the chart), which will lead to a rapid decline in the trading instrument. The key target of the sellers will be the level of 1,634, where I recommend exiting sell positions, as well as opening buy positions immediately in the opposite direction. The pressure on Ether can increase at any moment, especially in light of the morning sell-off. Important! Before selling, make sure that the MACD indicator is below zero and is just starting to decline from it.
Scenario #2: Selling Ether today is also possible in case of two consecutive tests of the price of 1,707 at the moment when the MACD indicator is in the overbought area. This will limit the upward potential of the trading instrument and lead to a downward reversal of the market. We can expect a decline to the opposite levels of 1677 and 1,634.
What's on the chart:
The thin green line is the entry price at which you can buy the trading instrument.
The thick green line is the price where you can set Take-Profit (TP) or manually fix profits, as further growth above this level is unlikely.
The thin red line is the entry price at which you can sell the trading instrument.
The thick red line is the price where you can set Take-Profit (TP) or manually fix profits, as further decline below this level is unlikely.
MACD line: it is important to be guided by overbought and oversold areas when entering the market
Important: Novice traders in the cryptocurrency market need to be very cautious when making decisions to enter the market. It is best to stay out of the market before important fundamental reports are released to avoid getting caught in sharp price fluctuations. If you decide to trade during news releases, always place stop orders to minimize losses. Without setting stop orders, you can quickly lose your entire deposit, especially if you don't use money management and trade with large volumes.
Remember, for successful trading, it is necessary to have a clear trading plan, similar to the one I presented above. Spontaneously making trading decisions based on the current market situation is inherently a losing strategy for an intraday trader.
