• Add

ETHBTC: A breakout below the ascending channel warns for more descents


Ethereum has been moving in a wide descending channel against Bitcoin. The last iteration went from near the top of the channel to below its mean line, and, then, it has retraced about 50% of that move, but it has been stopped by the 200-period average. Now the pair is moving down and has crossed the lower edge of the short-term ascending channel and below the recent low. That can be an idea for a short trade setup. On the fundamental side, we think Ethereum is currently weak against Bitcoin for two reasons. The first one is that bitcoin is gaining bullish momentum as it nears to the $10K level. The second one is the announced delay of Ethereum 2.0 upgrade of the POS code to June 2020, although the crypto community doesn't see it soon, due to the incessant bug hunt.

A short position if it breaks below 0.02244, with a target to the previous bottom of 0.0208, and an invalidation level above the last top (0.02323) would yield a Reward/risk factor of 3, which is excellent.

Key levels:

Stop sell entry: 0.02244

Invalidation level: 0.02323

Take profit level: 0.0208

Risk/reward factor: 3

Risk: $10.8 on every Ethereum purchased.

Reward:$33 on every ETH.

Following a 2% risk strategy, no more than 2 Ethereum should be purchased for every $1,000 in the trading account.

Source: https://www.cryptorocket.com/news/ethbtc-a-breakout-below-the-ascending-channel-warns-for-more-descents/
!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}