Crypto security scare and Fed hike fears crash Ethereum — short the downward mom
Thesis
Ethereum just crashed below $1,600 to a 13-month low, breaking crucial support levels. A perfect storm of negative events is hitting crypto all at once: a critical security bug found in Zcash is scaring investors out of digital assets, and Bitcoin is falling below $60,000. At the same time, a surprisingly strong jobs market means the Federal Reserve is more likely to raise interest rates, which historically drives money away from speculative assets like crypto. With momentum violently pushing downward, this trend looks likely to continue in the short term.
Strategy approach
Build a trend-following short strategy for ETHUSDT on the 4-hour (H4) timeframe. Enter a short position when the 9-period EMA crosses below the 21-period EMA and the MACD line crosses below the signal line. Exit the position if the price closes above the 21-period EMA for two consecutive candles. Set a hard stop loss 3% above the entry price.