DISCLAIMER: I am not a financial advisor nor certified analyst and definitely not a pro trader. All contents discussed on this blogpost are solely my own personal views and for Trading education/entertainment purposes only. Crypto/Cryptocurrency Trading is extremely risky where losses can exceed deposits. Enter with discretion. Do your own research and due diligence. The basis of this trading analysis is purely technical in nature.
This blogpost is now my 2nd part of the 3-part trade plans for the top cryptocurrencies including Bitcoin, Ethereum and Ripple XRP. And it is Ethereum’s turn.
We all know that Ethereum or simply ETH is the second most largest of all crypto alts for so many years now since digital assets were born. With the current Bitcoin dominance, I think it still give significance towards ETH.
However, Ethereum VS alts, ETH holds about 31% of the total alts market. So we should say a major stock holder.
My analysis for Ethereum is plainly simple! Just candles and moving averages hence I used the phrase in the title “Double Tops Quadruple Bottoms”. It is in fact literal! :-)
Do you want to know how I come up with this TA? I used the weekly timeframe.
Based on how I see the ETH chart, the first major resistance is $4,000, well of course its all time high is almost $4,400. The first double top group can be found from May 3-10, 2021 and next happened is hellish drop!
The first triple bottoms can be found like a mini ladder downwards during periods from May 17 – July 19, 2021. This is a 10-week period of consolidation.
The second double top is found from periods August 30 – September 2021 with the same enemy at the gates! The pesky $4,000 wall!
Right now at the time of writing this blogpost, ETH lost the $3,000 for good but not too long. It will recover and finding the 4th double bottom to complete my quadruple bottom play!
Technically, there is a strong buy according to the weekly supertrend indicator around $1,900+ and the weekly 50-SMA is also near, its almost a round-off to $2,000.
Anyway, my long trade plan for ETHUSD is to wait for the weekly 4th double bottom candles to appear. I will adjust an entry in $2,500 mark. Place a stop loss on the $2,000 while exiting on the third try on the said pesky $4,000 resistance.
The risk:reward setup is also 3, same with my previous BTCUSD short trade plan.
Good luck again to me.
I hope you have learned something from my second crypto TA for today. Last but not the least will be Ripple XRP.
Enjoy the rest of the day!
