The second largest cryptocurrency is having a euphoric start to the week. Since yesterday, it has effectively seen only upside, and is now +12% from the $1,250 support. Technical analysis of the h1 chart of Ethereum (ETH) seems to indicate that a buying opportunity is present. This is a potential short-term opportunity for day traders. Indeed, on a broader horizon, it is evident that panic still reigns in the crypto market.
Ethereum (ETH): a buy position around $1,300?
Going long in a strong bear market may seem crazy, but not impossible. For an experienced trader, it’s all about timing: knowing how to enter and exit at the right time. You just need to do a good technical analysis and manage the risks well.
After a chart analysis of Ethereum (ETH/USD), it looks like there is a buying opportunity around $1,300. There are several reasons for this, namely:
- The price bounce off the $1,250 support level. This jump is much more visible on a daily chart.
- The breakout of the upward symmetrical triangle. This figure is represented by two oblique red lines in the figure. This break indeed signals the beginning of a slight bullish phase in the short term.
- The breakout from last week’s top ($1,390). This shows the intention of the market to go higher.
- The ” QM » or Quasimodo (around $1,300) which will be the entry point for this buy ether position.
- The breakout of the 200 moving average in h1.
You may have noticed that the retracement of the price towards the oblique resistance of the triangle lines up with its return towards the QM. Thus, it increases the likelihood that the price will be bullish for a while.
What are the price targets?
This long position on Ethereum has two purposes where we can put our “ take profit “. These are two key levels where the price can turn to a new bearish movement:
- $1,448 : a level which presents itself particularly as a “ QM “. Because of this, this level could reject the price down for further decline. That’s why we took this ” level » for our first take profit (TP1) of this buy position on Ethereum.
- $1,545 : this is the center of a candle “ Marubozu in H1. Who says center, says 50% on the tool of ” fibonacci retracement“. In order to gauge the relevance of this level, you can take a look at the Bitcoin daily chart. In this case, the Marubozu candle is the daily candle for August 19. After touching the center of this candle, the price experienced a meteoric decline towards 18.5%.
This buying opportunity on Ethereum (ETH) is the result of purely technical analysis. It is therefore possible that fundamental factors lead to unforeseen movements in the market. This is why it is always advisable to follow the economic calendar and the news related to cryptocurrencies.
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