Ethereum Daily Zone Breakout and Retest

Direct from the desk of Dane Williams.

Hey team,

With Bitcoin blowing through 20K all time highs and not looking back, it doesn't really offer me a short term trading opportunity that I like the look of.

If you follow the way I trade, then you'll know that I only look to do business around areas of higher time frame support/resistance zones.

With no pullback into broken resistance retested as support on Bitcoin, I've turned my attention to Ethereum.

Take a look at the higher time frame below.

ETH/USD Daily:

As you can see on the Ethereum daily chart, Price has gone through its most recent swing highs.

While it isn't ETH's all time highs, it's the zone that corresponds with BTC's 20K zone.

But where Ethereum is different, is that momentum wasn't there and price pulled straight back to retest broken resistance as support.

Giving us an opportunity to zoom into an intraday chart and possibly find a short term zone to look to manage our risk around.

ETH/USD Hourly:

The hourly shows the price action perfectly.

After bouncing off the daily support zone we had been trading around, price pinged higher and went straight through the next zone.

Once it was above the higher time frame resistance zone, that's an indication that we want to be only playing from the long side.

So we find the last short term area of resistance that when retested as support, we can use as an entry.

In this case, it's that beautiful red hourly candle right in the middle of the zone that you can see being respected on the retest.

Certainly money to be made.

Best of probabilities to you,

Dane.

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