- Crypto shorts should probably cover here, as ETHUSD is at $1500, and possibly enter again if price closes a 4hr or daily candle below the presented channel, and previously broken bull flag, now being retested for the 2nd time.
- Traders that are trading Ethereum or any other crypto, should be very minded to what the Nasdaq futures will be doing on Monday, and looking at the weekly candle of this week, as well. After we had 4 weekly candles of a healthy bull rally, and 2 pullback weeks, this 3rd week will be especially important.
- Will we get a continuation for the hard selloff of last Friday, following the press conference of Jerome Powell at Jackson Hole? Or will the futures markets be ending their bearish pullback, and the market shall continue to rise, or go sideways. This risk-on or risk-off indication, via the futures market, will also shed its sentiment light on crypto.
- Till then, short positions should probably cover, IMHO, after a decline of apx 30% since mid August. Early bulls may consider a short term trade and should be aware of the area of the top band of the yellow channel shown in the ETHUSD technical analysis video.
- Traders that are considering the Long, should be watching for the 20EMA on the daily timeframe. It is dynamic and currently near $1650 but might be closer to $1600, in the near future, depending on when it gets there:
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Update: Some crypto traders may be seeking a Long trade idea at this retest, betting that it will hold, even temporarily. This is more for the short term trader than the Ethereum accumilation believer. But the reward vs risk, and the proabbility that we can still retrace up for a playable Long, makes this idea worth considering. I would say that it is not a great trade idea, but a legit one.
UPDATE on 31 Aug: ETHUSD is up apx. 7% since the entry, looking good. Profitable traders may consider taking 25% to 50% off at this stage, and running with the rest. Trade ethereum at your own risk.