ETHUSD traders need to keep being patient. The pair produced a good-looking bullish engulfing daily candle yesterday. It all looks good for long traders to go long on EthereumUSD. However, the resistance level, where the price had a rejection already, has been intact. Thus, Ethereum traders should wait until a daily breakout takes place at that daily resistance level to go long on the pair again.
Let us have a look at the EthereumUSD Daily chart.
The Daily Chart
The price was heading towards the upside with strong buying momentum on the daily chart. Then, the level of 278.45 came into play and made the price have a rejection. Consequently, a bearish engulfing candle, a bullish doji candle and a bullish engulfing daily candle have been produced. Since the level of 278.45 has been intact, ETHUSD traders must wait here for the price to make a breakout at the level of 278.45 to enter long positions again.
Let’s flip over to the H4 Ethereum chart and find out how the equations look like.
The H4 Chart
The H4 chart suggests that the price has been trapped within 229.55 to 278.45. In fact, a double top seems being formed on the H4 chart and make the daily traders wait longer to go long on the pair. If the price keeps coming down and makes an H4 breakout at the level of 229.55, then the H4 traders will start going short on EthereumUSD. The wave might be a long one too, which may change the bullish view on the daily chart at the end. Meanwhile, the price has to make a move and take a clear direction to offer entries to the traders.
For the daily long traders, a daily breakout has to take place at the level of 278.45. On the other hand, for the H4 traders, an H4 breakout has to take place at the level of 229.55 to go short on the pair. If there is no breakout, but the price stays within the zone, then it would be best to avoid taking entry on the pair.