Hi, many of my friens are bing into ETH is it going to go any higher? Why is it rallying. Should I enter long now, or is it a good idea to wait intil it breaks down?
2 Likes
It is very common for an instrument to bounce down off a previous high when it is tested a second time, as ETH is doing now, (Oct 2021) especially on longer time frames. The trick is to find a way to predict how far down it will go. So here’s a few suggestions;
-
Learn about Fib retracements and other indicators like RSI to help with an entry. (Plenty of free stuff on Youtube.)
-
Respect the main trend in the price currently. Trend is best measured buy looking for higher lows and higher highs in an uptrend and lower lows and lower lows in a downtrend. Clearly ETH has been in an uptrend so buying makes more sense than selling presently, but at what price?
-
Before buying, determine how and when to sell. (The exit is statistically more important than the entry.) ETH and BTC follow a four year cycle that looks like it may end with an 85% drop this December. This has been a reliable model for years but we will see if it plays out again soon. (Jordon Lindsey is a good resource on Twitter and Youtube to help with this,)
-
Crypto generally is very volatile so after you enter the market you must expect the market to go against you at some point as that is what most commonly happens. You have to decide at that point whether to stay with your position or get out. Trading is tough at the best of times so don’t think it will be different for you. The best thing to help you stay in a trade when it gets tough, as it will, is not to spend too much initially. Only trade what you can afford to lose. Otherwise the market swings will cost more emotionally than you could believe. In contrast, if you begin with small amounts the learning curve will be invaluable.
RobM