The Lisk/Ethereum (LSK/ETH) market started its bull run on August 26, 2017 when it breached resistance of 0.014.
It took some time, but it reached 0.035 on November 16. At this price level, the market has grown by 150%.
Breakout players exploited the chance to take profits.
As sellers dominate the market, LSK/ETH went as low as 0.01270001 on December 14.
The market quickly bounced after losing over 63% of its value in less than one month. It exploded to 0.038 on January 7, 2018.
Unfortunately for buyers at this level, bears defended the resistance of 0.035. Consequently, the pair was sent back to support at 0.02.
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At this point, the market’s range had been established.
Technical analysis reveal that the Lisk/Ethereum pair is consolidating as it trades in a wide range between 0.02 and 0.035.
What is Ethereum (ETH)
Volume spikes whenever the market reaches the support and resistance levels. This indicates that bulls are ready to defend 0.02 and bears are not about to give up 0.035.
We can use these levels to generate a profitable trade.
The strategy is to buy as close to 0.02 support as possible and sell as close to 0.035 resistance as possible.
The process may take a month.
Daily Chart of Lisk/Ethereum on Poloniex
As of this writing, the Lisk/Ethereum pair is trading at 0.0216064 on Poloniex.
Summary of Strategy
Buy: As close to 0.02 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.
Featured image courtesy of Shutterstock.
He has passed all three CFA exams on first attempt and has a bachelor's degree with a specialty in finance.
Kiril’s current focus is on cryptocurrencies and funds, as he does his own crypto research and is a Product Manager at Mitre Media. He also has his personal website, InvestorAcademy.org where he teaches people about the basics of investing. His ultimate goal is to help people with limited knowledge of finance and investments to create investment portfolios easily, and in line with their unique circumstances.