Ethereum price analysis | Two short term trading strategies for ETHUSD

Sabyasaachi Karmakar -

Ethereum’s popularity is steadily increasing. According to the latest reports, ETH demand surged by a whopping 260% in the last quarter. It might not surpass Bitcoin any time soon, but it sure could give the highly overvalued BTC a run for its money.

The historic fall in the Crude oil prices has undoubtedly stirred the Financial markets. Jitters were felt even in the cryptocurrency markets. BTCUSD fell below the $7k mark after a strong run in the past two weeks. Ethereum, too, has been very volatile.

  • The day’s range for the ETHUSD is $170.00 — $174.73. Ethereum is perfectly poised for short term trades currently.

Let’s go through the trade setups for Ethereum

ETHUSD Chart Published on TradingView.com

  • First, let us take a look at the hourly chart for ETHUSD. Here, we can see that Ethereum has formed a ‘Bear Flag.’ ETH was trading in a channel. The current price is $173. Breaking out of the channel, Ethereum would likely touch $161. Therefore, it could be a great time to enter a ‘short’ position here, with a target buy at $161, thereby making a profit of around 7%.

ETHUSD Chart Published on TradingView.com

  • The second possible trade requires a bit more attention to the price movement and a bit longer time frame than the previous set up. For this setup, we need to look at the four-hour timeframe chart for Ethereum. In this case, we can see that at the end of the downtrend of ETHUSD, there are three green candles, rising within the body of the preceding candle. This pattern is known as ‘three white soldiers,’ which is a bullish pattern. This could be a good time to enter into a ‘long‘ position with target sell at $187.

It is essential to understand that both positions are opposite. And it is vital to wait a bit and analyze the direction of the movement of ETHUSD prices.