Ethereum, H1 time frame:
Ethereum tried to update its absolute highs several times last week in the H1 chart. Some ended up lucky, but some didn't. The quotes of this cryptocurrency started to decline after a new high near the level of $ 1872 was formed. Traders finally started fixing profits on long positions, which led to its decline to the level of $ 200. It was previously mentioned that 10% per day for any cryptocurrency is a usual inactive Monday. Therefore, the main question now is, will Ethereum prices move below the Senkou Span B line and the upward trend line? So far, it is these limits that maintain the upward trend. If they do not resist, then a strong downward movement will most likely occur, which will be justified by technical factors.
Last time, it was recommended to buy Ethereum if a rebound occurs from the Kijun-sen line, but it did not happen. It was also suggested to sell it if the price breaks the critical line and it has been generated. Thus, now, traders should be in short positions with the Senkou Span B line and trend line as targets. Moreover, the Senkou Span B line has already been worked out, so sell deals can be closed now and wait for the formation of new signals.
Ethereum, M15 time frame:
Both linear regression channels turned down on the M15 chart, which confirms the formation of a corrective mood on the hourly time frame. Thus, we are now monitoring how the price behaves near the Senkou Span B line. The first attempt to break through this line was unsuccessful, which is clearly evident in the illustration.
At the moment, traders are introduced to the opinions of various people who are very important for the economy and the cryptocurrency segment in order to form a long-term opinion and long-term forecast regarding cryptocurrencies. As an example, Elvira Nabiullina gave her comment on Bitcoin, Ethereum, Litecoin and other popular tokens just the other day. In her opinion, they are not currencies, as they are too volatile and are used for questionable transactions. And although she acknowledged that people have an interest in cryptocurrencies, there are still high risks.
On another note, the beginning of the correction for all major cryptocurrencies may be the beginning of a long decline. It was already mentioned during the previous week that the reason why the price of cryptocurrencies grew is almost exclusively due to one factor – "Elon Musk factor", who gave several comments regarding these coins, and also purchased Bitcoin for $ 1.5 billion. However, any exciting news fades and so, the usual harsh everyday life begins. Traders do not yet see how to form new long positions. There were no new reports that any major company decided to follow the example of Tesla. Accordingly, new data will be needed that will contribute to the further growth. The good news for cryptocurrencies is that such news is not a problem. As we can see, comments in social networks may well provoke a strong growth in the market.
In any case, there are two trading ideas for February 15:
1) Buyers still take the lead, as the price continues to be above the Senkou Span B line and the trend line. Thus, it is recommended to buy Ethereum again if the price rebounds from the Senkou Span B line ($ 1661) or a trend line with targets set at the levels of $ 1757 and $ 1871. In this case, profit-taking can take up to $ 160 per lot. It is also possible to buy it, with a target of $ 1900, if traders successfully consolidate above the Kijun-sen line ($ 1762).
2) Bears managed to correct Ethereum by $ 200. Now, their main task is to continue attacking the bulls in order to consolidate below the Senkou Span B line ($ 1661). If this happens, it is possible to sell this cryptocurrency with a trendline target. Once this trend line breaks down, it will serve as a signal to open short positions with targets of $ 1557 and $ 1487. In this case, Take Profit can be up to $ 196 per lot.
Explanations for illustrations:
Price levels of support and resistance (resistance/support) – levels that are targets when opening purchases or sales. It is possible to place Take Profit levels near these levels.
The Kijun-sen and Senkou Span B lines – Ichimoku indicator lines transferred to the H1 and H4 time frame.
Support and resistance areas – areas where the price has repeatedly rebounded.
Yellow lines – trend lines, trend channels and any other technical patterns.
The material has been provided by InstaForex Company - www.instaforex.com