A Wild Ride
Well, a bumpy weekend was met by an equally aggressive Monday. Stocks and Crypto both continued their respective journeys south, as liquidations continued to roll out. The fear and greed index is hitting levels of extreme fear causing many to hit the high road. This is however nothing new and how market cycles operate. March of 2020 was way more severe in terms of price action, as well as the factors driving it. The market will recover but at the same time, we need to be wise in our approach. I have recently been trading ETH so I will be addressing key levels that will direct my actions from this point.
Losing The $2500 Level
Losing this level is rather significant and will ultimately halt me from opening new positions. I did however pick up ETH as low as $2232 yesterday evening. I will feel a lot safer once we break above $2500 again. A confirmation above $2600 will indicate a bullish reversal, at which point I would muscle up for a decent trade to approximately $2800. This is what I am watching and waiting for.
At least we are trading back inside this descending channel, which can be seen above. It is also quite clear how ETH was perfectly rejected at the top of the channel. Confirmation above this channel would be the first step in a 3 step requirement. As mentioned, I want to see a confirmation above $2500 and ultimately later confirm above $2600 before I get excited.
In typical market conditions, one needs to exercise caution. This is now even more important, as we are living in extremely unpredictable and unprecedented times. Exercise caution, do your own research, and never consider this financial advice. All the best!