Recently, the cryptocurrencies took a bullish turn while the other financial markets were closed. So, we can’t confirm whether the bullish trend is just a retracement or a reversal. However, in that tug of war, we spotted a trade setup which may turn into an opportunity for us.
Ethereum has formed an ascending triangle pattern which usually signals a bullish trend, but at this point, the market is standing in the overbought zone. The double top pattern is providing a solid resistance at $163 level. The ETH/USD pair has closed a doji and shooting star candles below the resistance level and we may see sellers entering the market.
The secondmost famous crypto pair may drop below the $163 level to complete the retracement near $150 and $147. So, we have also entered the sell position at $156 with a stop loss above $160 and take profit at $149.
Let’s see how it goes.
All the best!