The Substratum/Ethereum pair (SUB/ETH) launched its bull run on December 25, 2017 when it took out resistance of 0.0012. The breakout attracted momentum players who pushed the price to high as 0.002902 on January 6, 2018. At this price level, the market was in extreme overbought territory. Breakout players took the opportunity to dump their positions.
As the market faced heavy selling pressure, it nosedived to as low as 0.00101 on January 17. While the market did bounce, it only reached 0.00175. Sensing that bulls have ran out of steam, bears took control of SUB/ETH.
Technical analysis reveal that Substratum/Ethereum may be stabilizing at 0.0005 support. Yesterday, March 8, the volume spiked to 3.514 million units of substratum when the daily average was just around 1.12 million. This indicates that bulls are prepared to defend the support.
The strategy is to buy as close to 0.0005 support as possible. If bulls continue to claim this level, the market will likely create a base while range trading to our target of 0.0012. The process may take a month.
Daily Chart of Substratum/Ethereum on Binance
As of this writing, the Substratum/Ethereum pair is trading at 0.00057045 on Binance.
Summary of Strategy
Buy: As close to 0.0005 as possible.
Disclaimer: The writer owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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