Ethereum Short Trade on Bearish Momentum

Direct from the desk of Dane Williams.

Hey team,

After Ethereum faked out and rejected off daily resistance, price has spent the day continuing lower again.

I first just wanted to share a quote of yesterday's Ethereum hourly chart just to show how well we're respecting the daily zone.

From yesterday's blog that I linked back to in the opening paragraph:

ETH/USD Hourly:

Now onto today's price action and the beautiful 1:3 short which was a gimme on the day's bearish momentum.

Here's an updated Ethereum hourly chart with the 1:3 conservatively drawn on:

ETH/USD Hourly Updated:

If you haven't taken a look yet, I have outlined my simple support and resistance trading strategy here.

But the premise of this setup is that while below the daily zone we look to short.

Then take the last area of short term support that when retested as resistance, we enter off.

Which is exactly what happened, nice a clean.

The zones work guys. Don't lose faith ;)

Best of probabilities to you,

Dane.

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