Crypto Analyst Breaks Down Ethereum Price Movement Against USD and Bitcoin Providing Clarity On ETH’s Future Trajectory
In a recent tweet, Jacob Canfield, a renowned crypto analyst, provided insights into the price movement of Ethereum (ETH) against both the USD and Bitcoin (BTC). In this article, we will delve into Canfield’s analysis, examining the market structure of Ethereum in both pairings and discussing the implications for traders.
Ethereum Against USD: Bullish Market Structure
Canfield highlights that the market structure of Ethereum against the USD pairing is currently bullish. He notes that since June of 2022, Ethereum has formed higher lows and higher highs, indicating an upward trend. Moreover, Ethereum is trading above the 200-day (200D) and 200-week (200W) moving averages, further supporting the bullish sentiment.
However, Canfield advises caution, as Ethereum is currently trading at a strong weekly resistance level. While it may be tempting to buy at this point, he suggests waiting for a daily candle to close above the $2135 resistance and then buying the retest. This approach offers a higher probability trade and reduces the risk of buying at a potential resistance level. Canfield emphasizes that these weekly resistance level breakouts have historically resulted in significant price moves of 30-40%.
Ethereum Against Bitcoin: A Different Picture
When analyzing Ethereum’s chart paired with Bitcoin, known as the ETHBTC chart, Canfield observes a distinct difference in the market structure. Unfortunately, he does not provide further details or analysis on this aspect, leaving traders to explore this pairing on their own or seek additional insights from other sources.
Expert Analysis for Informed Trading Decisions
Canfield’s breakdown of Ethereum’s price movement against the USD and Bitcoin offers valuable insights for cryptocurrency traders. By examining the market structure and identifying key resistance levels, traders can make more informed decisions regarding their Ethereum investments.
Canfield’s recommendation to wait for a daily candle closing above the $2135 resistance and buy the retest demonstrates a strategic approach to trading. This approach minimizes the risk associated with buying at a resistance level and increases the probability of a successful trade.
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In conclusion, understanding the market structure and price movement of Ethereum against different pairings is essential for traders seeking profitable opportunities. Canfield’s analysis serves as a valuable resource for traders, enabling them to navigate the Ethereum market more effectively and make informed trading decisions.
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