Ethereum Rips Through Daily Zone - Opportunity to Long a Pullback

Direct from the desk of Dane Williams.

Hey team,

With Ethereum on a tear today, ETH/USD has pushed through a daily support/resistance zone and is now in-play from a day trading point of view.

For context on why I've drawn this current Ethereum zone, check the weekly chart in my daily crypto support/resistance analysis I published on the weekend.

Once you've looked (or you take my word for it lol), then take a look at the daily chart below.

ETH/USD Daily:

Now that price has gone through higher time frame resistance, that means that we're only looking to day trade Ethereum from the long side.

In order to do that, we zoom into an intraday chart and look at how price action is reacting around the daily zone.

Take a look at this price action on the hourly below.

ETH/USD Hourly:

We want to find an entry that gives us a higher probability that the market is moving in our direction, while also offering an extremely favourable risk:reward.

This is why I find the last area of short term resistance - Simply the last red hourly candle within the daily zone.

If this short term zone is now retested as support, we can use the zone to as a buy signal with clearly defined risk to the downside and daylight above.

Day trading isn't about predicting where price will go, but instead consistently putting yourself in low risk/high reward positions like this.

Let's see how this one plays out.

Best of probabilities to you,

Dane.

FOREX BROKR | LeoFinance Blog Daily market analysis.

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