Jack's Trading Classroom | Possibility of spot buying on ETHUSD daily chart

Ethereum earlier formed a bullish continuation pattern - a cup and handle pattern within a smaller timeframe. After reaching a historical high at 4383.5, the price dropped significantly by 60.58% to a low of 1728.15.

Today we saw the daily chart of ETHUSD, after forming a low point, Ethereum retraced to the moving average support channel formed by EMA144 and EMA169 on the daily chart, and effectively rebounded to around the current price of 2830.

Currently, the indicator we should focus on in the daily chart is the EMA12 filter line. If the Ethereum price closes higher in the daily chart above the EMA12 filter line, it can be considered that the daily retracement is completed and the buying condition is met, and it can be judged that the daily bullish trend will probably continue. Buying long positions can be done with the premise of breaking through the previous high.

The stop loss point should be set below the previous low of 1727.15, and due to the distant stop loss distance, this short-term trading should be done with spot trading.

Recently, the cryptocurrency market has experienced large fluctuations. It is recommended that operators strictly implement risk control and avoid high leverage and high contract volume operations to prevent additional losses caused by volatile market conditions. This article is a personal opinion, please read it carefully, and cryptocurrency trading may bring risks to your capital.

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