Short Ethereum (ETH)
I've conducted a detailed analysis of Ethereum's historical corrections and are using that information to anticipate a potential correction in the current bull run. Given the bearish divergence on the daily timeframe and Ethereum's historical correction patterns,I anticipate a correction ranging from 50% to 80%, considering rational and worst-case scenarios.
Trade Idea: Short Ethereum (ETH)
Analysis:
Bearish Divergence: The presence of bearish divergence on the daily timeframe suggests a potential weakening of bullish momentum, which could lead to a correction in Ethereum's price.
Historical Corrections: Based on my analysis of previous bull runs, Ethereum has experienced corrections ranging from 60% to 93%. Considering these historical patterns, I anticipate a correction ranging from 50% to 80% in the current bull run.
Trade Setup:
Entry: Wait for confirmation of the downtrend by observing a break below key support levels or a bearish continuation pattern on lower timeframes. Alternatively, you can use a sell stop order to enter the trade once the price breaches a significant support level.
Stop-loss: Set the stop-loss order above the recent swing high or a key resistance level to limit potential losses if the price unexpectedly reverses. Adjust the stop-loss level based on the volatility of Ethereum and your risk tolerance.
Take-profit: Determine multiple take-profit targets based on key support levels, Fibonacci retracement levels, or a favorable risk-reward ratio. Consider scaling out of the position as the price approaches each target to lock in profits.
Risk Management:
Position Size: Calculate your position size based on your risk tolerance and the potential range of the correction. Ensure that you only risk a predetermined percentage of your trading capital per trade.
Risk-Reward Ratio: Aim for a risk-reward ratio that aligns with your trading strategy and risk appetite. Given the potential for a significant correction, prioritize trades with favorable risk-reward ratios.
Conclusion:
With bearish divergence on the daily timeframe and historical precedent suggesting potential corrections ranging from 50% to 80%, a short position on Ethereum presents a compelling trading opportunity. However, always conduct thorough analysis, practice proper risk management, and remain vigilant for any unexpected market developments.
Trade Idea: Short Ethereum (ETH)
Analysis:
Bearish Divergence: The presence of bearish divergence on the daily timeframe suggests a potential weakening of bullish momentum, which could lead to a correction in Ethereum's price.
Historical Corrections: Based on my analysis of previous bull runs, Ethereum has experienced corrections ranging from 60% to 93%. Considering these historical patterns, I anticipate a correction ranging from 50% to 80% in the current bull run.
Trade Setup:
Entry: Wait for confirmation of the downtrend by observing a break below key support levels or a bearish continuation pattern on lower timeframes. Alternatively, you can use a sell stop order to enter the trade once the price breaches a significant support level.
Stop-loss: Set the stop-loss order above the recent swing high or a key resistance level to limit potential losses if the price unexpectedly reverses. Adjust the stop-loss level based on the volatility of Ethereum and your risk tolerance.
Take-profit: Determine multiple take-profit targets based on key support levels, Fibonacci retracement levels, or a favorable risk-reward ratio. Consider scaling out of the position as the price approaches each target to lock in profits.
Risk Management:
Position Size: Calculate your position size based on your risk tolerance and the potential range of the correction. Ensure that you only risk a predetermined percentage of your trading capital per trade.
Risk-Reward Ratio: Aim for a risk-reward ratio that aligns with your trading strategy and risk appetite. Given the potential for a significant correction, prioritize trades with favorable risk-reward ratios.
Conclusion:
With bearish divergence on the daily timeframe and historical precedent suggesting potential corrections ranging from 50% to 80%, a short position on Ethereum presents a compelling trading opportunity. However, always conduct thorough analysis, practice proper risk management, and remain vigilant for any unexpected market developments.
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.