Ethereum presents a shorting opportunity- should you take it?
ETH fell below the lows of a month-long range. The bullish breakout and the move to $2000 appeared to signal bullish intent but saw a wild bout of selling that dragged Ethereum back into the range. Could the same thing happen if ETH falls to $1800?
It was possible. However, based on the evidence at hand the more likely scenario was that ETH would continue to fall lower. It has bearish momentum and market structure. If the OBV can fall below the local support, it would be an early sign of buyer exhaustion.
Meanwhile, a move above $1880 would invalidate the short setup.
Entry: $1837 (retest of range low)
Stop-loss: $1880 (lower timeframe lower high during the recent drop)
Take-profit: $1770- $1750 (fair value gap and lower high from mid-June)
R:R- 1.56
It was possible. However, based on the evidence at hand the more likely scenario was that ETH would continue to fall lower. It has bearish momentum and market structure. If the OBV can fall below the local support, it would be an early sign of buyer exhaustion.
Meanwhile, a move above $1880 would invalidate the short setup.
Entry: $1837 (retest of range low)
Stop-loss: $1880 (lower timeframe lower high during the recent drop)
Take-profit: $1770- $1750 (fair value gap and lower high from mid-June)
R:R- 1.56