Advice

Is Ethereum a buy at 400?

Today is Thursday, March, 29th, 2018 which is the last trading day of the quarter for U.S. stocks.  Today is an up day for the S&P 500, but it is down about three percent for the quarter.  Crypto currency are down much more than that in the same time frame.  There was a time in February in which stocks and cryptos looked to be trading with a high correlation.  That correlation has been lost over the past several weeks.  Hopefully this breaks any correlation there was, and allows cryptos to trade as a separate risk asset class.

The current charts of the biggest crypto currencies do NOT look good at all.  Since early January they have made a series of lower highs and lower lows.  In Ethereum (ETH) this $400 level has not been seen since November of last year.  We feel that if ETH holds this $400 level for the next several days, then you can put new money to work here with a stop just below $400.

This drop in Ethereum from $1,400 to $400 has created many great trading opportunities.  These opportunities will remain as long as the volatility remains at this extremely high level.  We recommend actively trading and using these ten-to-twenty percent swings to add to your total coin count.  even is you believe, like we do, that ETH will trade back to $1,400 this year, that is no reason to stop trading.

If you had purchased two coins when ETH was at $900, it could take you months to get back to even.  However, if you actively traded ETH you could have easily turned those two coins into 5 coins.  Making your break even point much lower, and realizing a sizable profit when ETH regains that $900 level.

For tips and tricks on trading feel free to contact us.

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