Jack's Trading Classroom | ETHUSD Ethereum Shows Buying Opportunity Again
Currently, we are looking at the 4-hour candlestick chart of ETHUSD. Within the chart, we can see that Ethereum weakened in the short term and reached a low of 3124.25.
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The recent low point coincided with a retest of the EMA144 and EMA169 moving average support channel. With the condition that the candlestick had closed above the EMA12 filter line and was unable to break below the channel, the K-line had closed higher above the EMA12 filter line earlier, meeting the conditions for a Vegas channel entry.
The stop-loss point should be set at the previous low of 3124.25, and the entry point should be based on the closing price of 3514.9. The profit-taking target should be determined based on future market conditions, or gradual stop-loss protection can be set based on profit distance.
It is worth noting that in the previous Ethereum hourly K-line chart, the entry conditions for the Vegas tunnel trading method fell between April 19, 2021, and April 25, 2021, with entry prices ranging from 2270.4 to 2288.45.
Currently, one can still use the breakthrough of the previous high as a premise for operation when the entry conditions are met.
This trading cycle is based on a medium-term strategy on the four-hour chart, with a relatively distant stop-loss distance. For contract trading, it is recommended to enter with a leverage of 10X or less to avoid being liquidated due to short-term fluctuations, or one can choose spot trading.
In recent days, the digital currency market has experienced significant volatility. It is advised that operators strictly adhere to risk management practices and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article reflects personal opinions, and readers are advised to use caution and discretion. Cryptocurrency trading may involve risks to your capital.
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