ETHUSD back into resistance zone | needs to push out above 710

After reversing the trend, ETH has made its way back into the resistance zone (650-745). The previous move on the 4 hour chart from 425-650 produced would have produced a nice return of 10-12% to the bottom line utilizing a 1% risk model.

What to look for now.

More consolidation in the current range between 625-680 on declining volume would be ideal. Currently the move from 620 has been on declining volume which is why more consolidation would be welcomed here. Next, ETH needs to clear the 710 area with volume. If it can do this, then there is a reasonable chance that ETH can reach the next zone (830-900).

Position sizing the trade correctly will be key. Right now, if you use a 1% risk model its likely that 12-15% of capital could be allocated towards the trade if ETH moved above 710. From a theoretical standpoint, a move from 710 to 830 would be 120 points or 17%. If it were to happen and reached the bottom side of the next zone then the trade would be worth about 2.5% to the bottom line. Best of luck!

*All ideas are for informational purposes only. They are never recommendations to buy or sell.*