Ethereum, H1 time frame:
Ethereum continued to move upwards in the H1 time frame. But unlike Bitcoin, it pays attention to important levels and does not trade abruptly. Yesterday, this cryptocurrency showed calm growth. It rose by $ 191, which is also quite a lot, but still not a few thousand dollars. As a result of which, it managed to reach the level of $ 1,757.81, an extreme level. The price has rebounded from this level twice a few days back, which it did clearly. Thus, this level can and should be used in trading. If the price breaks through it, it is possible that Ethereum will further rise. However, there is no extreme level above the next resistance level of $ 1812.43, since it is currently at its absolute maximum value. Thus, if it fails to break through it, a downward correction will most likely happen, which one can consider.
Ethereum, M15 time frame:
Both linear regression channels are inclined above in the M15 time frame, signaling a short-term upward trend. However, the cryptocurrency failed to break through the level of 1757.81 twice and it is very evident in the chart that the price has never formed a “false breakout”, unable to keep its position above this level for more or less an hour. Thus, we are directed to a possible correction to the critical Kijun-sen line.
The world’s second leading cryptocurrency has gained access to the Chicago Mercantile Exchange. This significant global event for cryptocurrencies took place on the night of February 8. Ethereum quotes data will be provided by the Bitstamp, Coinbase, Gemini, itBit and Kraken cryptocurrency exchanges. It should be noted that on February 5, this cryptocurrency set an absolute maximum value ($ 1,760) per coin. So, yesterday’s growth, which led to a new record, is logical and fundamentally justified. Now, a lot of experts are waiting for a deep correction in the cryptocurrency. But as part of the latest correction, it only managed to fall by $ 277, then rose again. In this case, the two main cryptocurrencies in the world: Bitcoin and Ethereum, continue to grow almost simultaneously. At the same time, many experts, especially economists, and those working for governments or central banks continue to insist that all cryptocurrencies are like bubbles that will burst sooner or later. This opinion is logical. It is long known that cryptocurrencies are not secured by anything and their value is determined only by supply and demand. You may think that this is common, as the price of any asset is determined by supply and demand. But in the case of cryptocurrencies, the supply and demand themselves depend only on the factor of “speculative” and “traders’ sentiment.” During calm periods, the second factor comes to the fore, but in times of strong growth or decline, the first one is ahead. In fact, all strong movements of any cryptocurrency are an attempt by traders to gain profit. Once strong growth begins, it provokes market participants not yet participating in it to connect, which makes an even stronger movement. Sooner or later, large players will begin profit-taking, and the price will surely start to decline. This is the specificity of cryptocurrencies.
In any case, there are two trading ideas for February 9:
1) Buyers took the lead again, pushing Ethereum towards new peaks. Thus, it is recommended to buy this cryptocurrency if it successfully breaks through the extremum level of $ 1757.81, with targets at the resistance levels of $ 1812.43 and $ 2029.00. In this case, Take Profit can be up to $ 249. It is also possible to buy it with targets of $ 1694.83 and $ 1757.81 if the price rebounds from the Kijun-sen line ($ 1635.00).
2) Bears initiated the formation of a downward trend, but they could not take the cryptocurrency below the Senkou Span B line and even approach the upward trend line. Therefore, it is recommended to trade below, with targets set at the level of $ 1694.83 and the Kijun-sen line ($ 1635.00), if the price rebounds from the extreme level of $ 1757.81. Anyhow, Rake Profit can be up to $ 97. Short positions, in turn, can be opened with the target of the Senkou Span B line ($ 1513.00), if the bears will be able to consolidate below the critical line.
Explanations for illustrations:
Price levels of support and resistance (resistance/support) – levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.
The Kijun-sen and Senkou Span B lines are the Ichimoku indicator lines transferred to the H1 and H4 time frame.
Support and resistance areas – areas where the price has repeatedly rebounded.
Yellow lines – trend lines, trend channels and any other technical patterns.
The material has been provided by InstaForex Company – www.instaforex.com
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