Veteran Trader John Bollinger Explains Why He Has Bought Ethereum

Prominent American financial analyst and trader John Bollinger has tweeted about buying a small amount of Ethereum, the second-largest cryptocurrency.

I bought a little $ethusd, a trial position, last night, with a close stop–well close for crypto… I liked the pattern on the six hour and have been looking for an entry. Not a high confidence trade and I am probably early, but toe is in and I am focused now.

— John Bollinger (@bbands) January 27, 2022

The veteran trader behind the “Bollinger Bands” indicator claims that it’s a “trial position.”

Bollinger explains that a bullish pattern on Ethereum’s six-hour chart prompted him to make the aforementioned purchase.

With that being said, he has cautioned his followers that this is not a “high confidence trade,” adding that the timing of his purchase might not be the best.

Earlier this month, Bollinger tweeted that

Ethereum plunged to an intraday low of $2,160 this Monday amid an ongoing cryptocurrency market correction. On Wednesday, the cryptocurrency surpassed $2,700 during a relief rally only to swiftly give up its gains. Ethereum is currently trading at roughly $2,400 on major spot exchanges.

Notably, Bollinger urged his followers to pay attention to the Ethereum chart right on the verge of the correction.

The flagship altcoin is down 51.21% from its record peak of $4,878.