Anyone trading Ether at the moment is surely taking a risk if they are looking to buy here. However, the current levels offer the best risk-reward at the bottom of a potential new uptrend.
Unfortunately, if the downward trend does not reverse then a rather grim bearish scenario is likely to play out. Currently, ETH isn’t showing much support until the low $100s and this could offer a good opportunity to short should Ether go below $160.
A break below this key support level would mean more downside, if not a sharp plunge. The easier it is to break a key level, the less one wants to jump in front of a moving train — much better to catch a ride on it instead.
One would do this by looking for any short-term rallies in price once this key support has been broken. Once identified, shorting with an initial target around the $130 area could present itself as a lucrative trade.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
