Trading tips for beginner traders. Overview of yesterday’s trading in crypto market. Ethereum on July 18, 2023.
July 18, 2023 7:27 am
Analysis and Ethereum trading tips
Yesterday, Ethereum retreated alongside Bitcoin and suffered significant losses. However, it has not exceeded the boundaries of a regular correction and so far has not sparked panic among traders. The altcoin tested the level of 1,927 when the MACD indicator began moving downwards from zero, confirming a sell signal. As a result, the trading instrument decreased to 1,904, allowing traders with short positions to make a sizeable profit. Afterwards, bullish traders opened long positions on the asset when it bounced upwards, as stated in scenario 2 of yesterday’s outlook. The upcoming earnings season in the US is putting some pressure on the cryptocurrency market. Traders are anxious that it could push down risky assets, including Ethereum as well. The bigger the correction, the more attractive the asset will be to traders.
Buy signal
Scenario 1: you can go long on Ethereum today once it reaches the entry point at 1,913 (the green line on the chart), targeting 1,933 (the thicker green line on the chart). Once the asset reaches the area 1,933, you should close the long position and open a short position. Ethereum is expected to increase as the bullish trend develops. Caution! Make sure the MACD indicator is above zero and is reversing upwards from that level before going long on Ethereum.
Scenario 2: long positions on Ethereum can also be opened if the altcoin tests 1,903 two times in a row while the MACD indicator is in the oversold area. This will limit the trading instrument’s downward potential and lead to an upward reversal in the market. In such a scenario, Ethereum might reach 1,913 and 1,933.
Sell signal
Scenario 1: short positions on Ethereum can be opened after the altcoin hits 1,903 (the red line on the chart), which would lead to a rapid decline of ETH. The level of 1,885 will be a key target level for bearish traders, where you should close your position and open a long position immediately, expecting ETH to reverse upwards. The pressure on ETH will persist after the asset moves below 1,900. Caution! Make sure the MACD indicator is below zero and is reversing downwards from that level before going long on Ethereum.
Scenario 2: you can also go short on ETH once the altcoin tests 1,913 two times in a row while the MACD indicator is in the overbought area. This will limit the trading instrument’s upside potential and lead to a downward reversal in the market. In such a scenario, Ethereum might decline to 1,903 and 1,855.
Indicators on charts:
A thin green line indicates a buy entry point.
A thick green line indicates a point where you can set a Take Profit order or lock in profits manually because the price will unlikely go above this level.
A thin red line indicates a sell entry point.
A thick red line is the estimated price level where you should place a Take Profit order or close positions manually because the quote is unlikely to fall below this mark.
MACD. When entering the market, it is important to pay attention to the indicator’s overbought and oversold zones.
Important! Novice crypto traders should be very careful when deciding to enter the market. Before the release of important fundamental data, you should stay out of the market in order to avoid sharp price fluctuations. If you decide to trade during news releases, make sure to always place a stop order to minimize losses. Without the order, you may quickly lose your entire deposit, especially if you do use money management but trade large volumes.
Remember that in order to succeed in the market, you should have a clear trading plan, like the one I presented above. Spontaneous decisions based on the current state of the market are a losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
Analysis and Ethereum trading tips
Yesterday, Ethereum retreated alongside Bitcoin and suffered significant losses. However, it has not exceeded the boundaries of a regular correction and so far has not sparked panic among traders. The altcoin tested the level of 1,927 when the MACD indicator began moving downwards from zero, confirming a sell signal. As a result, the trading instrument decreased to 1,904, allowing traders with short positions to make a sizeable profit. Afterwards, bullish traders opened long positions on the asset when it bounced upwards, as stated in scenario 2 of yesterday’s outlook. The upcoming earnings season in the US is putting some pressure on the cryptocurrency market. Traders are anxious that it could push down risky assets, including Ethereum as well. The bigger the correction, the more attractive the asset will be to traders.
Buy signal
Scenario 1: you can go long on Ethereum today once it reaches the entry point at 1,913 (the green line on the chart), targeting 1,933 (the thicker green line on the chart). Once the asset reaches the area 1,933, you should close the long position and open a short position. Ethereum is expected to increase as the bullish trend develops. Caution! Make sure the MACD indicator is above zero and is reversing upwards from that level before going long on Ethereum.
Scenario 2: long positions on Ethereum can also be opened if the altcoin tests 1,903 two times in a row while the MACD indicator is in the oversold area. This will limit the trading instrument’s downward potential and lead to an upward reversal in the market. In such a scenario, Ethereum might reach 1,913 and 1,933.
Sell signal
Scenario 1: short positions on Ethereum can be opened after the altcoin hits 1,903 (the red line on the chart), which would lead to a rapid decline of ETH. The level of 1,885 will be a key target level for bearish traders, where you should close your position and open a long position immediately, expecting ETH to reverse upwards. The pressure on ETH will persist after the asset moves below 1,900. Caution! Make sure the MACD indicator is below zero and is reversing downwards from that level before going long on Ethereum.
Scenario 2: you can also go short on ETH once the altcoin tests 1,913 two times in a row while the MACD indicator is in the overbought area. This will limit the trading instrument’s upside potential and lead to a downward reversal in the market. In such a scenario, Ethereum might decline to 1,903 and 1,855.
Indicators on charts:
A thin green line indicates a buy entry point.
A thick green line indicates a point where you can set a Take Profit order or lock in profits manually because the price will unlikely go above this level.
A thin red line indicates a sell entry point.
A thick red line is the estimated price level where you should place a Take Profit order or close positions manually because the quote is unlikely to fall below this mark.
MACD. When entering the market, it is important to pay attention to the indicator’s overbought and oversold zones.
Important! Novice crypto traders should be very careful when deciding to enter the market. Before the release of important fundamental data, you should stay out of the market in order to avoid sharp price fluctuations. If you decide to trade during news releases, make sure to always place a stop order to minimize losses. Without the order, you may quickly lose your entire deposit, especially if you do use money management but trade large volumes.
Remember that in order to succeed in the market, you should have a clear trading plan, like the one I presented above. Spontaneous decisions based on the current state of the market are a losing strategy for an intraday trader.
The material has been provided by InstaForex Company – www.instaforex.com
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