Ethereum is the second most traded coin after bitcoin. It has the best characteristics to trading in terms of volume and range, my primary choice over bitcoin.
I’m going to be doing a live event on YouTube on Wednesday July 19th, at 5pm with Rahul Sood, CEO of Unikrn. He’s one of my old mentors and someone who helped me start Bulls on Wall Street. We will be discussing "The Future of the Cryptocurrency Market" and how we can all capitalize on the crypto boom including Ethereum and ERC20.
With Ethereum ETH, you can see that in February it was sitting around $5 - $12. Since then it’s had an epic run up. If you run from a few dollars to $400, there’s going to be a period of consolidation and pullback. That’s just the natural way stocks behave. Currently, ETH has been in a short term downtrend. So when does the bounce start? Well you don’t necessarily know. With trading, you can’t just assign a level and just buy into it. When you do that, you’re in no man’s land. There’s no confirmation that the level is going to hold.
I always respect the trend to both the upside and the downside. As its coming down, I make ideas of where potential support can be. $180 could be a potential level. But we don’t have any evidence yet. So how do you know that a bounce starts? Well, remember that bottoms are a process and rarely an event. What you want is to see some rounding action or some bottoming formation of where the support is holding. This is where we can add validity and let the support build. If it does, I’ll be watching the 9 EMA. The 9 EMA represents your short term moving average. If this MA is still curling down on top of the stock, it’s pushing it down. But when you see the trend reverse, your 9 EMA will start to flatten out. This will tell you that your short term trend is starting to even out. Then when you break over the 9 EMA and it holds, that’s when I’m looking to see if all things are a go.
Once the bottom formation develops, I’ll look on the smaller term time frame like an hourly chart and look for a bottoming process that clears some levels. Then we’ll get a clue as to what’s going to happen. But while we wait for the bottom we can actually short setups. When you see bear flags you can short them for some really nice gains. Participate both ways!
Make sure to join us for our live YouTube discussion on July 19 at 5 PM EST. Click here to set a reminder so you don't miss it.