Chart of the day

Ethereum is reaching the key upside resistance 1840 before testing 2040. A break above 2040 will open a complete upside reversal higher.

I see this still as a finish of the complex ABC correction before a continuation higher but we need to see a confirmed break above the 2050. The critical medium-term and Q4 20203 resistance upside is 2040-2100 and a confirmed break above it is required for a complete upside.

Long trades are favored to be opened here upon a break above 1800 and a stop just below 1600. I prefer the long trade entries and building a buying position at this stage as I see an ongoing price action to continue higher after this resistance test. However, I would be careful if invalidation would come upon a break below 1600. Short trade entries could come only upon a confirmed break below 1600 for a swing trade lower.