Facts:
- Ethereum has halted declines in the $2,500 region and has begun to see small net inflows into ETFs.
- The rebound in the altcoin market we are seeing now may encourage buyers to get more involved in projects like Bitcoin and ETH, which remain oversold.
Recommendation:
Long position on ETHEREUM at market price
- TP: 3120
- SL: 2508
Opinion:
Ethereum has halted declines in the $2,500 area and has begun to see small net inflows into ETFs. The rebound in the altcoin market we are seeing now may encourage buyers to get more involved in projects like Bitcoin and ETH, which remain oversold. It is worth remembering that despite the fading from the headlines of the crypto adoption update after the change of the US president, it does not change the fact that Trump’s term in office will in all likelihood be supportive for the sector.
However, investors are advised to be extremely cautious of the asset, given the high volatility inherent in the instrument. We recommend taking into account the take profit and stop loss levels against this transaction (they were based on the zone of the recent minima of the consolidation zone, below the 200-day EMA (stop loss) and the area of the local January minima (take profit, zone of the 200-day EMA)).
Methodology and assumptions used:
The recommendation was based on technical analysis of the chart and price action of ETHEREUM. The target level and stop loss order were placed in the zone of previous price reactions of supports and resistances. You can read more about this methodology here:
Source: xStation 5
