Connect with us

Ethereum

Your guide on how to scalp Ethereum [ETH] to $3,200

Published

on

Source: Unsplash

Ethereum price is traversing a bullish setup on a short-term outlook, suggesting a breakout to the upside soon. Interested investors can be patient and capitalize on the next leg-up that will push ETH to $3,200 and higher, especially if the bulls support it.

Ethereum price to take off soon?

Ethereum price is inside a descending parallel channel and has been for exactly a month. Within this time frame, ETH has set up three distinctive lower highs and four lower lows, which when connected using trend lines, show a descending parallel channel.

As ETH retests the upper trend line for the third time there is a good chance for a breakout to occur in the next couple of days. However, there is likely to be a minor retracement to the $2,880, which will be a buying opportunity for interested investors.

Even beyond this support floor, there is another one at $2,763, which will be the make-or-break point for the long setup we are hunting.

A clean break above the channel’s upper trend line at roughly $2,975 will denote a breakout. In such a case, the technical formation setup forecasts a move equal to the width of the channel. Adding this measure reveals a target of $3,262, which will be our take-profit level.

Therefore, investors can capitalize on the 13% upswing that is yet to originate. However, the $3,197 hurdle could cut this run-up short, so buyers must be aware of this blockade.

In a highly bullish case, Ethereum’s price could shoot up to $3,584, bringing the total gain to 24%. Although unlikely, the best-case scenario could propel ETH to $4,000, constituting a 38% ascent.

Source: TradingView

Adding a tailwind to this long scalp idea for Ethereum price is the 30-day Market Value to Realized Value (MVRV) model. This indicator is primarily used to gauge the sentiment of holders as it tracks the average profit/loss of investors who purchased ETH tokens over the past month.

While a negative value indicates that these holders are underwater and are less likely to sell, a positive value indicates that holders are in profit, and the risk of a sell-off is high. Santiment’s backtests show that -10% to -15% is where long-term holders accumulate, leading to a local bottom formation. Therefore, the aforementioned range is termed an ‘opportunity zone,’ since the risk of a sell-off is less and it is a good place to buy.

Currently, the 30-day MVRV is hovering close to 0%, but the local top is formed at around 15%, which reveals that there is more to move up north. Hence, supporting the technical perspective’s bullish forecasts.

Source: Santiment

Read the best crypto stories of the day in less than 5 minutes

Subscribe to get it daily in your inbox.


Please select your Email Preferences.

Manisha is a News Editor at AMBCrypto. With a Master's degree focused on Mass Communication, Manisha is good at multitasking with an eye for detail. She is fascinated by new, emerging technologies and her interests lie in the regulatory implications of such tech.

Click to comment

Leave a Reply

Your email address will not be published.

Disclaimer: AMBCrypto's content is meant to be informational in nature and should not be interpreted as investment advice. Trading, buying or selling cryptocurrencies should be considered a high-risk investment and every reader is advised to do their own research before making any decisions.