ETH/BTC - Opportunity To Buy
What's up traders,
Here we have ETH/BTC 1.42% on the 4H chart.
ETH/BTC 1.42% was recently trading in a flag structure, between a horizontal support level at 0.083000 and the upper side-wards resistance at 0.088700 (At pre breakout levels). Price has recently broken structure and it looks like it is ready for a new up move, to the upside target of 0.11250.
Price has broken out of the side-wards resistance. When price was testing the support previously it was making lower lows. But on the last retest of support on January 12, it broke out of structure and has now given a clear higher high. There is potential for more upside in this trade.
I am expecting Ethereum -3.74% to continue an up move. Before this, price could retest the previous side-wards support level at 0.08400 before the up move to the target begins.
This trade could play out in 2 days, I have outlined these below:
-Price successfully continues to rally to the upside without retesting horizontal support. Price will hit the upside target at 0.112000.
-Price retests the horizontal resistance zone at 0.084000 first, before going to the upside target of 0.112000.
Bare in mind, that price will more likely hit the upside target level if it retests the support zone first (As outlined in my second scenario). A retest will create a short term wave pattern, which will bring price well on it's way to the upside target at 0.112000.
If price breaks the support zone , it would suggest a sudden and severe weakness in the pair and it would not be a good idea to be a buyer anymore.
I will updating this analysis if it receives more than 40 likes.