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ETH/USD crypto signal - Go long if support holds - 05 Feb 2018

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ETHUSD has continued to ape its peers as the value of the cryptocurrency continues to decline. For the cryptocurrency market, any news is bad news and with the clampdown from almost all quarters of the world, the cryptocurrency market looks gloomy and doomy. However, for speculators this could turn out to be a blessing in disguise. While the fundamentals in the crypto market are hard to grasp, price action in cryptocurrencies certainly trumps everything else.

Firstly, make no mistake. The Ethereum cryptocurrency is indeed in the midst of a sharp correction. Some call it bubble. It may be true, or it may be not. But the recent surge in the cryptos certainly makes a correction a much needed requirement. There is a lot going on in ETHUSD and speculators certainly have some great opportunities ahead. Within the bigger story, the recent decline in ETHUSD, which is currently trading around $715.00 looks to have completed one part of the descent.

This view comes from the fact that correction below 720.83 marks the 61.8% Fibonacci correction from the historic lows to the all time highs at 1424.30. What this means is that we expect ETHUSD ripe to post a rebound. From the current levels, we expect to see a short term rebound in the ETHUSD price. At the very least, this correction (which is a counter trend position) could see ETHUSD recovering to at least 1041.00 levels in the near term.

Thus, long positions at the current price zone of 760.35 - 720.83 is an ideal level as we would buy at support. Of course, instead of going long blindly, we wait for price action over the next 24-hours. Ideally, we expect ETHUSD to rebound off the support as the correction to the trend could see ETHUSD rising back to the 1041 level. In order to be certain of the long position, we wait for an initial reversal sign such as a doji or an inside bar near the current support zone.

For the most conservative speculator, waiting for a higher low at or around the current levels are also ideal (however, there is no guarantee that we can expect price to post a higher low). But watch for minor resistance at 840 for the higher low to be formed.

We are looking to place the stops for the long position around 640.43 or closer to 640.00 level while we target 1041. Break even on a daily close above 840.00 and let the profits rise, targeting the round number of 1000 followed by 1041.

crypto trading signal ethusd 05 Feb 2018

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.