Ethereum maintains muted movement; Bitcoin touches $19.7k
“The market can remain irrational longer than you can remain solvent.” – John Maynard Keynes.
When we are looking at the absolutely amazing, irrational, fantastic, insane move of Bitcoin, it’s hard not to get into tunnel vision and focus on the big whale in the cryptocurrency sphere. I don’t want to add to the noise and information that you and I can get anywhere. Let’s look at what the second highest market cap. coin, Ethereum, is doing on this day.
Yesterday I discussed a couple trade scenarios that were open to forming and showing up for we traders. In a great many ways, we still have that setup. Currently, ETHUSD, for me, is an instrument I would be comfortable trading and the only major cryptocurrency that is showing signs of normalcy. Let’s analyze this current price action.
- The boxes represent two areas: price bouncing off of a support line and an open area where would like volume to reach.
- Price has responded nicely to that support line and we have had responsive buyers when priced retreats to that line. One thing to remember about these kinds of lines of support/resistance is that they get stronger the more they are tested.
- Take notice of how volume responds at those support levels. The increase in volume while price declines is exactly the kind of market behavior we want to see for a support line.
- The best trade scenario right now is, probably, a range trade between 518.68 and 375.57. If your only option to is to go long, then go long and sell near the 500 price level.
- What is very nice about ETHUSD compared to other cryptocoins is that it is not moving erratically or unpredictable as a response to Bitcoins movements. The Ethereum/Dollar pair is showing rationality and is, at least for this trader, one of the better instruments to trade.