Welcome back,
Two days back, we started experimenting with a lot of tokens, and one of them was Ethereum Finance. Today, I want to share my technical analysis of this token.
I have already started booking some profit, even though I still believe this token has strong potential for the coming months. It can easily go 2 to 3x from here because it belongs to the Ethereum ecosystem. Whenever Ethereum goes up, this token usually follows the same price movement.
For example, if Ethereum moves to around $6,000 to $7,000, then Ethereum Finance can easily cross $3,000 to $4,000. Right now, it is trading at $1.6. I have sold 25% of my holdings already, and I am planning to buy it again based on my technical analysis.
You can see that we are currently trading between the two trend lines denoted by red and green. The red trend line is acting as the support for Ethereum Finance at the moment, around $1.43 to $1.44, while the resistance is at $1.65 to $1.66. The previous support, which I have marked with a yellow trend line in the screenshot, was around $1.05. We have already moved away from that zone, and now the token is trading in this new range between the support and resistance levels.
In case we are able to successfully break the current resistance, then the next strong resistance for Ethereum Finance is at $1.85 to $1.86. That will be my target once the breakout happens. But for now, I think the token will consolidate between these two trend lines, as the overall market sentiment is a little neutral to bearish.
The new white trendline can be seen as one of the most important resistance for now. Breaking it will bring a nice move in Ethfi ( Ethereum Fianance ).
I am still going to take the risk and trade my tokens in order to multiply them or book some profit. If the token does not come down to the price where I want to buy it back, then I will simply look for another token or one of my existing tokens to put this money into.
One thing is very clear, the Alt Season might not look like the Alt Season even after it arrives. We should not run from the fact that the market has got matured and the moves we use to see before are now difficult to see in this cycle. So you either accept the truth and book realistic targets or end up staying in loss for the rest of this bull cycle.
Thank You and Happy trading Everyone.
