Ethereum buyTheDip Alert: Entry Levels and Bullish Targets

Ethereum traders and investors were presented with an excellent buy-the-dip opportunity approximately seven to eight hours ago, as highlighted in our exclusive alert to the Investing Live Crypto Telegram group. This alert identified a prime entry range for Ethereum (ETH) between $2,436 and $2,440.

Previous Successful Call to Buy ETH Before It Popped 50%

This call follows our previous timely call for your consideration on May 7, raising the idea to enter at around $1,840, which subsequently generated a remarkable 50% gain. Ethereum’s price surged significantly from the bull flag breakout, demonstrating the effectiveness of well-timed market entries and advanced technical analysis.

Current Ethereium Technical Analysis and Bullish Outlook

Ethereum is currently situated within a clearly defined ascending channel, known as a spin-off channel. The next significant bullish confirmation traders should look for is a breakout above this channel, with an immediate target set at approximately $3,370.

Long-term bullish targets exceed Ethereum’s all-time high for futures prices of $4,093, with a highly optimistic scenario projecting beyond $4,872, marking over 100% potential gain from the recent entry level around $2,436.

Risk Management for Crypto Buyer of the Dip: Initial Stop-Loss Placement

To mitigate risk effectively, the trade setup initially includes a stop-loss approximately 6% below the entry level, rather than directly under recent lows or the channel boundary. This strategic decision accounts for liquidity pools, volume profiles, and the likelihood of fake-outs, as market makers frequently target overly tight stops placed by traders.

ETH Trade Plan Partial Profit-Taking and Stop Adjustments

Following the robust principles of the Trade Compass methodology, traders may consider partial profit-taking to lock in gains and reduce risk exposure. Suitable areas for profit-taking include:

• Initial partial profit: Around $2,492 (approximately 2.3% gain), just below the psychologically significant $2,500 round-number level.

• Second partial profit: Around $2,611 (approximately 7% gain), strategically positioned above key candle highs where many short positions may have stops.

Adjusting the stop-loss upwards after taking partial profits further solidifies the trade’s risk management strategy.

Defensive Strategy and Additional Buys, in Case ETH Does Another ‘Fakie’

If Ethereum’s price experiences fake-outs or tests additional lower key levels, the strategy allows for averaging into another position at a lower entry to improve the overall cost basis. The original stop-loss placement remains firm, ensuring clear maximum risk control.

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Stay tuned for more insights, risk management updates, and strategic entry opportunities, ensuring you capitalize on optimal buy-the-dip scenarios.

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(Disclaimer: Trading cryptocurrencies carries inherent risks. This article does not constitute financial advice. Always conduct your own research and consider your risk tolerance before making any investments.)