The Ethereum Dilemma.

Prices trading near a horizontal level are always my favorite positions to discuss. Here, we can consider two great opportunities with good risk reward. Entering near a horizontal area ALWAYS gives great risk-reward, which is why you'll see me often talking about those.

The first and most obvious trade here is a long trade upon the breakout. However, we have already seen a breakout here with two wicks slightly above the resistance and the price did not manage to pull through.

The second trade idea would be a short trade on the reversal near the resistance, assuming it would hold. This would be a great idea too, yet risky as the price is in a clear uptrend and the entire market is in an uptrend right now.

That's why in this case I suggest waiting for confirmation before entering a position. If it clearly breaks out upwards go in with a long trade, if it clearly moves downards again go in with a short trade.

However, to make things complicated. I don't see the volume and volatility either to go all the way to the all time high right now or back to the $1000 level. That's I would suggest to keep this trade small for now and trade towards the smaller horizontal zones.


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Disclaimer!
This post does not provide financial advice. It is for educational purposes only!