Altcoin Opportunities

Ethereum price prediction & trading strategy: Key levels to watch

Published: Sep 25, 2024

We’re approaching a major resistance level at $2,700. Historically, this price point has seen a lot of selling pressure, dating back to key resistance in January and August. Buyers push prices up, but if they hit exhaustion or shorts enter, it creates resistance. That’s exactly what we're facing now.

Market context

We're currently holding a long-term Ethereum position, which has developed into a winning trade. It's a daily trend rather than an intraday move, which presents multiple opportunities to scale in and adjust our risk management accordingly. We’re looking at risk-free zones and areas of strength as the price action continues to unfold.

Disclaimer: This is not financial or investment advice. You are responsible for any capital-related decisions you make, and only you are accountable for the results.

Current trade position

We’re riding this uptrend with a clear swing high and lower high, followed by a breakout. It's critical to manage this trade effectively by reducing risk when possible. I tend to go risk-free as soon as possible, but the timing is essential—you don't want to do it too early and get shaken out of the position. Let’s break down why this matters.

If Ethereum breaks above $2,700, we’ll shift our bias more bullishly, as that means sellers have been beaten. This could signal the start of stronger buying pressure at that level. Once we have a clean break with a retest and consolidation above this point, we can move our stop loss to break even, locking in the trade’s gains.

Playbook

Key level: $2,700 is the critical checkpoint. A clean break and retest here signal that sellers have stepped aside.
Risk-free approach: Upon breaking $2,700 with conviction (multiple daily closes above), move the stop loss to entry to go risk-free.
Next target: If we see daily closes above this level, we can aim for $2,900, potentially adding to the position.

Risk management

Don’t move your stop-loss to break even prematurely. Sellers are still strong at $2,700, so moving your stop right now could cause you to get stopped out unnecessarily. Once we see buyers take control, then it’s safe to reduce risk. Until then, maintain conviction in this trade.