Potential signal: If Ethereum ends up above the 50 Day EMA on a daily close, I will buy. I will have a stop loss at the $2950 level, and a target of $3885.
- Ethereum plunged during the early hours on Tuesday, but at this point in time, the market is likely to continue to see a lot of noise out there as we're hanging around the crucial $3,000 level.
- The $3,000 level is obviously a large round to figure and obviously an area where people might have options, or they may just simply be looking to try to get into the market at the cheap.
- Whether or not that ends up being the case could very well determine what happens with Ethereum for the next several weeks.
The $3000 level is a major psychological level, and if we give that up, and perhaps even more importantly give up $60,000 in the Bitcoin market, it’s possible that we could see crypto in general take a beating.
So, whether or not that actually ends up being the case, it's a little bit difficult to tell. But I do think at this point you have to look at it through the prism of, whether or not, we start to see a little bit of momentum. So, with that being said, I think you have to wait to see if we get a reasonable bounce.
You Need to See Momentum Here
If we do get a reasonable bounce, then, I think the 50 day EMA could be a target. If we can break above the 50 day EMA, then this could be a major swing low. We are most certainly in an area that is going to cause a lot of noise. Ultimately, this is a market that if we were to break down below the $2,800 level, then we could test the 200 day EMA underneath which is closer to $2,600.
Keep in mind that Ethereum, of course, will move in tandem with Bitcoin over the longer term, and Bitcoin looks like it's a little bit threatened at the moment as well. So, there might be value hunters here. But the most important thing I think you need to see is some type of momentum to the upside enter the market. Otherwise, you may be trying to catch something that's about to fall apart.
Ready to trade our ETH/USD forecast? We’ve made a list of the best Forex crypto brokers worth trading with