Cryptocurrency Academy: On November 7, Ethereum saw a sharp rise and fall. The survival rules are not to chase after rises or panic sell! First, survive.
The first principle is to prefer missing out rather than making mistakes. The second is to never over-leverage in trading. The third is to learn to stay out of positions and wait for opportunities. The fourth is to preserve your capital before thinking about profits. The fifth is to learn to review and summarize patterns.
The current price of Ethereum is 2875, with the daily candlestick reaching a high of 2882 and a low of 2700, which indicates a one-sided trend driven by the EMA trend indicator at 120. This has initiated a long-awaited rebound. The top resistance level of the bat pattern is at 2680, and it is wise to exit before reaching 2700. After the morning session opened, a sharp rise began. When trading, it’s crucial to pay attention to such trends. Do not chase after rapid rises and falls; leave that to others. We will observe and wait for the rebound to finish before making further decisions.
Currently, the daily candlestick has already surpassed the high point of the EMA trend indicator, continuing to move upwards. Theoretically, it can be considered to short above 2820, with a stop loss of 30 points. If it breaks, it can be abandoned. However, before the publication, it had already broken 2880, so there is no need to continue testing positions. Wait until the rebound ends. The MACD is shrinking and starting to expand, with the DIF and DEA forming a golden cross above the zero axis. The upper band of the Bollinger Band has broken the resistance level of 2810, turning it into a support point. Do not rush; wait for effective pressure to form above before drawing a Fibonacci retracement line to find support points for layout.
The four-hour candlestick has continuously stretched, pulling up more than 400 points from 2400. This shows how wise my idea was two days ago when I said that Ethereum breaking below 2400 indicated a hunting area for long positions. The EMA trend indicator has opened an upward network expansion, with EMA15 already rising to 2600. It is expected to further rise to the range of 2650 to 2700 before slowing down. After the MACD expands upward, the upper band of the Bollinger Band has simultaneously fallen below 2770. The approach is to focus on long positions while using shorts as a supplement. Be prepared with both hands and a red heart. The essence of trading is survival; regardless of long or short positions, always set stop losses to prevent liquidation. When wrong, learn to admit it; do not resist.
The main reference should not be taken as operational advice. If the trend is bullish, then remember: do not trade against the trend.
Long positions are suggested in the range of 2700 to 2750, with a defense at 2650 for adding to long positions, stop loss at 50 points, and a target of 2800 to 2850. If broken, look for 2900. $ETH
Everyone is welcome to discuss and share insights in the comments section. Congratulations again to those who hunted below 2400.
