Ethereum is one of the most traded cryptos on trading platforms. In recent days, it has experienced a more or less significant increase. This allowed day traders to find entry points for a long position. On Ethereum, a significant level was seen around 1,680 USDT. As of this writing, this position has already closed in profit. Let us analyze in detail the why and how of this position.
Crypto trading: why did you take a long position on Ethereum?
First, it is because ETH is in an uptrend over the medium term. Who says medium terms, says on a daily timeframe. For a day trader, this is the ideal scale to begin chart analysis.
Then, it will be necessary to descend on a chart in 4 hours or an hour to find key support/resistance levels. On the ETH/USDT chart, we can see a level where the price gets rejected every time: around 1680 USDT. Thus, it could be an ideal entry point to do crypto trading on Ethereum.
More so, the price recently broke above the July high: 1,785 USDT. This confirms, for followers of the SMC (a trading strategy), that Ethereum is ready to continue its bull run. But before that, the market will take “buy” orders around a key level.
This is why this day trader took a long position on Ethereum/TetherUS.
In order to protect a position, but also the capital, a trader should put a stop loss and a take profit.
This is the low of the Asian session: 1,655 USDT which served as a stop loss, in the case of this crypto trading on Ethereum, . Indeed, the London session did not break above this low. This means that the US session is not going to go below this price. This is then an ideal level to put your stop loss. Finally, the support/resistance zones in the medium term will be the take profits.
Thanks to this analysis, the long position on ETH is closed at a profit. If you want to do crypto trading on Ethereum in the future, you can use these analytical methods. Thus, it will help you to profit from every movement of the market, even in the short term.
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The Cointribune editorial staff
SEO Web Editor for 3 years, I specialize in cryptocurrency, blockchain, trading, and NFT.