With Ethereum ($ETH ) reaching a price of $2,488.25 after a strong rise, is this the beginning of a correction in the market? How can we deal with this movement? Here’s a simple trading strategy to help you make the right decisions.
Quick analysis:
Current price: $2,488.25.
RSI (Relative Strength Index): 82.65, indicating overbought conditions.
Bollinger Bands: The price is approaching the upper limit ($2,608.13), increasing the likelihood of a correction.
MACD: Shows strong momentum but with signs of divergence with the crossover between the lines (DIFF and DEA).
Proposed trading strategy (DCA + smart stop loss):
If you haven't entered the market yet:
Wait for the correction to $2,400 - $2,420.
Use the DCA (dollar-cost averaging) method to gradually enter at these levels.
If you are already in the market:
Set a trailing stop at $2,420.
Target $2,500 - $2,550 for good profits if the rise continues.
Temporary selling opportunity (Scalp):
If Ethereum fails to break $2,600, you can sell temporarily with a tight stop loss.
Final advice:
Don’t miss the correction opportunity! Strategies like DCA and smart stop loss will protect you and give you strong opportunities in volatile markets like Ethereum.
Do you see the correction as an opportunity or a risk? Share your thoughts in the comments!
