- Ethereum rallied slightly during the trading session on Thursday as we continue to see a bounce back from the significant sell-off that previously had been so drastic.
- It looks like the $3,000 level has offered quite a bit of support. And of course, it's worth noting that we bounced directly off of the 50-day EMA.
- This is a market that is enjoying a lot of inflows, right along with the other crypto markets at the moment.
Buying on the Dips
Ultimately, this is a market that we continue to see a lot of buying on the dip, and this move has been rather impressive. Furthermore, you have to look at this through the prism of interest rates in not only America, but around the world. Central banks are looking to loosen monetary policy, and in fact, the Swiss have done so during the early part of the session. And that brings in more demand for Bitcoin, which has a effect on Ethereum. Ethereum ETF is certainly in the cards now and we should see a lot of inflow into Ethereum due to basically repeat behavior.
In general, this is a market that I have no interest in shorting and it looks as if the $3,000 level has offered a massive amount of support, and it is now the floor in the market. The $4,100 level above was the recent high, and I do think that we get there given enough time. All things being equal, this is a market that I think you continue to look at dips as opportunity. The Ethereum market will continue to follow Bitcoin overall, as it is the main driver as to where a lot of cryptocurrencies go overall.
Central bank easing will be the main story over the bulk of the year, and as a result, this is a situation where it is simply a play on more demand for the backbone of the crypto markets and ecosystems. As there is a rush into the cryptosphere, Ethereum is a natural winner overall. I have no interest in shorting this market at the moment.
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