Investment idea: Buying Ethereum
A popular analyst at TradingView Trade_lab evaluated the cryptocurrency's prospects and told if it will continue to grow
Since the beginning of this year, the stock exchanges are dominated by optimistic sentiment, the cryptocurrency market is no exception. One of the reasons for the renewed demand for risky assets is the decline in inflation in the U.S. and as a consequence, market participants expect the imminent end of tight monetary policy.
In this regard, we single out buying Ethereum as one of the most interesting ideas on the cryptocurrency market.
The price of ETH/USDT is close to the important resistance level of $1680, which it hasn't been able to break since last fall. In case of its breakdown upwards, there will quite likely be a situation, which is called "short squeeze" in traders' slang - a fast rise in price due to closing of excessively opened short positions. In case this scenario comes true, the nearest reference point for the growth is the range of $2,000-$2,200 for ETH/USDT.
For the past few months there is a wide range for ETH/BTC, where the price is at its lower boundary at the moment. An upward reversal would serve as a definite driver for Ethereum.
Trade Plan:
Buy ETH/USDT on an upside breakout of $1,700
Risk of 3% of capital for a deal
Stop loss $1 500
Take profit $2 200
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