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Recently, Ethereum (ETH / USD) has been very difficult to trade unless you were shorting the market. While other altcoin pairs such as Ripple, Bitcoin Cash and Stellar have been showing bullish signals, Ethereum continued to slump. In fact, it dropped to as low as $ 167 on September 12, 2018. At that price level, the market was down by over 88% from the 2018 high of $ 1,419.96.
At $ 167, however, Ethereum started to bottom out. Volume picked up as the bottom pickers entered the buying scene. This attracted more buyers and helped provide the push needed to step out a bearish pattern.
Technical analysis show that this cryptocurrency is on track. These breakouts have bullish implications.
This is the market for the four months. However, the market corrected the day after the breakout. Without a convincing rally, the price action was in danger of becoming a bull trap.
Fortunately, Ethereum has managed to stay above the resistance. This is an encouraging sign. In doing so, Ethereum has created a symmetrical triangle on the 4-hour chart. This is more encouraging news. This indicates that a rally is likely to erupt soon.
The strategy is to buy as close to $ 220 as possible. This is a long-standing chance to be rally to our target of $ 300.
The process may take a month.
4-Hour Chart of Ethereum / US Dollar on Coinbase
As of this writing, the Ethereum / US Dollar pair is trading at $ 230.15 on Coinbase.
Summary of Strategy
Buy: As close to $ 220 as possible.
Target: $ 300
Stop: $ 210
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the currency, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.
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