Ethereum, H1 time frame:
Ethereum tried to continue rising in the hourly chart and break through the resistance level of $ 1812.43, but it failed again. It was clearly indicated in the chart that there were at least three price rebounds from this level. Thus, the probability of a downward correction gets higher. At the same time, it should be noted that the cryptocurrency has been moving inside a side channel ($ 1697 - $ 1812) during the previous days, alternately rebounding from its borders. Thus, if bulls consolidate above the level of $ 1812 level, a new round of upward movement will be likely. In turn, bears' prospects are below the Kijun-sen line, which now almost coincides with the level of $ 1697. At the same time, the upward trend continues, as both upward trend lines remain relevant.
In the previous article, it was suggested to buy Ethereum if the price breaks through the level of $ 1,757.81. It did happen, and so, the target of $ 1812 was also worked out. Thus, traders could earn about $ 40-50 per lot. Selling, in turn, was recommended if the price rebound from the $ 1812 level. This signal was also generated, so traders could earn another $ 40-50 per lot. At the same time, short positions still remain relevant, since the price is likely to break through the level of $ 1757 level and decline to $ 1694.
Ethereum, M15 time frame:
Both linear regression channels turned up again in the M15 chart. However, it clearly shows how the price failed to break through the level of $ 1812 five times. Thus, a corrective movement is more preferable now, despite the upward direction of the channels.
Ethereum is moving up again, just like Bitcoin. During the other day, it became known that this cryptocurrency has become the largest network for settlements. The number of transactions is growing every day, and transfer fees are declining, which makes the second most popular cryptocurrency even more popular. Ethereum also attracts traders and investors with its much lower cost than Bitcoin, and also by being less popular in the world and among large investors and companies. For example, Elon Musk recently invested in Bitcoin, thus setting an example for other companies. However, if large institutional players and banks start investing in cryptocurrencies, they will be in the "cue ball", and not in Ethereum. Therefore, we can say that Ethereum remains a quieter cryptocurrency, but not less promising. TThe news about Tesla's purchase of $ 1.5 billion worth of bitcoins had nothing to do with ether, and its exchange rate rose just as much as bitcoin. Moreover, many people are really afraid to deal with the "cue ball", since it is the first enemy of the world's central banks and governments and it is extremely volatile. In February 2017, the "cue ball" cost a thousand dollars, and in December 2017, by almost $ 20,000, and a year later, about $ 3,000 per coin. Thus, not all investors want to deal with a cryptocurrency that can lose about 90% of its value in a year. These are also true for other cryptocurrencies, in particular for ETH. It is also extremely volatile, and its movement somehow depends on the cue ball. But if we talk about cryptocurrencies as a means of calculation, then Ethereum, Litecoin and other cheaper cryptocurrencies seem to be more interesting for these purposes than Bitcoin. Lastly, the rates of Ethereum and Bitcoin have more than quadrupled for the past three months. However, this will not be eternal. Profit taking, massive sales and, accordingly, a decline will begin sooner or later, just like it was in 2017.
In any case, there are two trading ideas for February 12:
1) Buyers are still taking control. Thus, it is recommended to buy Ethereum again if the price rebounds from the critical line ($ 1698), with targets set at the resistance levels of $ 1757 and $ 1812. In this case, Take Profit can be up to $ 90 per lot. It is also possible to buy it, with a target of $ 1900, if traders successfully consolidate above the level of $ 1812.
2) Bears have recently corrected the cryptocurrency, but the strength is still lacking. Today, they will attempt to resume the correction, with the target set at $ 1698. It is recommended to open short positions with targets at the level of $ 1557 and the Senkou Span B line ($ 1513), if the price consolidates below the Kijun-sen line ($ 1698). In this case, Take Profit can be up to $ 110 per lot. There is also still a short trade on the signal of a rebound from the level of $1812.
Explanations for illustrations:
Price levels of support and resistance (resistance/support) – levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.
The Kijun-sen and Senkou Span B lines – Ichimoku indicator lines transferred to the H1 and H4 time frame.
Support and resistance areas – areas where the price has repeatedly rebounded.
Yellow lines – trend lines, trend channels and any other technical patterns.
The material has been provided by InstaForex Company - www.instaforex.com