Ethereum Lagging Bitcoin to Target $490
Bitcoin has advanced breaking its August high and reclaiming 12500. Ethereum is now lagging the move with signals suggesting it could follow.
Ethereum – Volume spike above 50 EMA and close above the daily flag pattern. Moving down to lower time frames will also provide smaller continuation patterns for upside.
- Price holding above the 50 EMA
- RSI bounces off 50 mid-point
- Bitcoin advancing to break August highs while Ethereum is lagging
- Flag break out with volume supporting the move
Support – 360, 50 EMA
Resistance – 490
Optimal entry provides the greatest reward to risk ratio while supporting entry is a zone for reversal signals.
Optimal Entry – 380
Supporting Entry – 390
Candle Reversals for entry
As traders, it is your job to mitigate the risk and only trade structures that provide high probability and great reward to risk ratios.
If you are not comfortable with defined exit levels, experiment with Moving Averages to help set solid exit rules to protect your capital.
IF: Price breaks below 349 and violates 50 EMA – this would suggest the structure is not in our favour and would be wise to reduce exposure or close the trade until a solid signal gives us reasons to re-enter.
Reward / Reward Targets:
Optimal Entry 380 – Target 1 490 = 3.7x Reward to Risk
Supporting Entry 390 – Target 1 490 = 2.5x Reward to Risk