What to watch if you’re trading Ethereum
Ether is the cryptocurrency that operates on the Ethereum network, so when we’re talking about Ethereum we’re also talking about Ether. Ethereum is a decentralised computer network which uses blockchain technology to facilitate payments and other online transactions. Launched in 2015, the value of the Ether cryptocurrency has increased more than 7000% in the past year.
If you are trading ETH/USD then you may want to watch the technical analysis for Ether too. However, with such a limited history it may be too soon to use your Fibonacci retracement tool or Gann fan. Instead, traders are paying attention to simple support and resistance techniques and watching for repeats of the flash crash that happened in June.
The public perception of Ether/Ethereum is also a key factor and one that traders may want to monitor. Some useful resources are the official Ethereum Twitter account and the Ethereum Blog. Traders who are signed up to Reddit should also monitor the /ethereum Subreddit to follow the latest discussions.
Ether, Bitcoin and other cryptocurrencies are highly volatile and carry a high level of risk, including the risk of discontinuation. Therefore traders should implement reliable risk management strategies when trading any cryptocurrencies.
Want to know more about trading Ethereum? Speak to the Intertrader team now.
You should under no circumstances consider the information and comments provided in this article as an offer or solicitation to invest. This is not investment advice. The information provided is believed to be accurate at the date the information is produced.