Is It Bullish? Why Yes, Indeed It Is.
In the recent days we’ve been seeing some positive altcoin action. Coins like FET, CELR, MATIC & BTT have been seeing some healthy gains. The big coins like Bitcoin & Ethereum have stalled out, but something tells me they may still have some gas left in the tank.
On April 30th I made a post titled “How High Can Ethereum Go?” The price of ethereum was at $167 at the time of that article, we’re currently sitting at $252.
I had two coins that I was holding back in April (NEO & ETH).
As of right now I only hold ethereum & it’s looking strong. Ethereum seems to be following Bitcoins price action to some extent, below we can see a comparison of bitcoin & ethereum & it looks like ETH might be lagging behind. We were able to break out of the ascending triangle just as BTC did, we then pushed all the way to resistance and have retraced since then.
After bitcoin broke out of the ascending triangle it consolidated for about a month before it began taking off again. I think ethereum might be doing something similar here, there’s a lot we can learn from bitcoins recent move and apply it to what ethereum might do. The only thing we can’t predict is how long these things will take.
How High Could Ethereum Go?
It looks like ethereum is in the middle of forming a bull flag & might make its way back to the green moving average bringing us around a 22% retrace. A 20-25% retrace seems to be the sweet spot for ethereum before it gets going again. Though it’s important to remember, it doesn’t necessarily have to retrace & can just get going if the volume comes in.
I’ve had to make some adjustments to the targets since my last post:
- Target 1: Hit & cleared it after we broke ascending triangle
- Target 2: If we see any kind of retrace it will be within the $340-372 range, this is a spot where we had some trouble with in the past.
- Target 3: If we blow past our previous target, $444 – 462 will be my last spot where I exit 90% of my ethereum position. It’s possible that we go higher than this but it’s more likely than not we’ll get some kind of big retrace after such a big run up. I’d like to secure my profits which would come out to be around 150% from where I initially entered the trade .
This Trade Won’t Work If…
We break down below $200, that would be a strong signal that this trade is over and that we’re going back to our previous bottom. But as of right now the price action looks bullish & I consider it to be one of the safest coins to put my money in.
But as of right now all we can do it wait and see if this move works. If it doesn’t I have my stop loss and take the loss and look for the next opportunity.
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