We just closed out a big, exciting week in the cryptocurrency markets - the entire Central American country of El Salvador is now using Bitcoin as legal tender, for Pete's sake. And just like that, the leading digital currency gapped down from above $50,000 to $47,500. That's when Nayib Bukele, the Salvadoran president, announced his country "bought the dip," and added another 150 bitcoins to the gross national stash when the coin dropped.
On second thought, forget about a big week - it's always exciting in crypto, isn't it? Never a dull moment. For my money, it's one of the most exciting, dynamic, and lucrative assets trading today.
It's about much more than just Bitcoin; there are hundreds of smaller "microcurrencies" out there - just ask Tom Gentile's readers - not to mention other massive cryptos like ADA and Ethereum.
That's where this week's big crypto profit opportunity is, not in Bitcoin but Ethereum. We're going to go a slightly different route and play the $3,100 coin for just 1% of its price.
You read that right, by the way - the Ethereum play I've got in mind is one hundred times cheaper. So right after you make Shah Gilani's trade tomorrow morning, get ready to buy this...
The Smarter, Lower-Risk Way to Play ETH
We're going to take a shot at big profits for pennies on the dollar today, while everyone else is forking over thousands.
That's what intelligent investing is all about: managing risks in pursuit of great rewards. In this case, instead of buying the volatile asset itself, we'll buy shares of a fund that tracks the asset's prices, namely the Greyscale Ethereum Trust (OTC: ETHE). It's currently trading at around $31.
Believe it or not - and you should believe it - there are other cryptos trading at a fraction of the price of the big dogs like Bitcoin, Ethereum, and Litecoin, some of which have been beating Bitcoin by 30x, 50x, even 100x in the last 30 days. You can see more about those here.
A very interesting, very promising technical picture has emerged over the past few days that makes this too good to pass up - it's low-hanging fruit, in fact.
Cryptocurrencies have been on a technical break lately as we've seen both Bitcoin (BTC) and Ethereum post some short-term selling.
But the recent pullback has ETHE shares bouncing from the "Trader's Trendline," which is what I like to call the often overlooked but vitally important 20-day moving average (MA20).
The 50-day moving average (MA50) also remains in a bullish trend, suggesting that the crowd is still in buying mode when it comes to the general technicals for ETHE.
Put all of this together, and we've got another outpouring of technical buying that is likely to push shares first through the round-numbered $40 level followed by a challenge of the $45 price shortly afterward.
That gives us an ETHE profit target of around 45%. Buy ETHE at market, up to $35, and set a 7% trailing stop when the shares get to $40. Because a trailing stop moves up and down along with the share price, that'll protect your principal and a lot of your profits.
This isn't the only potentially moneymaking move you should be making tomorrow morning - not at all. In fact, tomorrow just might be the biggest Monday you've had in a while. That's because my colleague, Shah Gilani, is going LIVE tomorrow morning at market open - 9:30 a.m. Eastern - with a "blowout" trade. He told me the last time he saw the market behave this way, his play shot up 189% by month's end - enough profit power to turn $1,000 into $3,000. So, by all means, enjoy the rest of your weekend, but DEFINITELY go here and learn how to confirm your attendance before Monday's opening bell.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.