There is real demand for Ethereum, as other fiat currencies are getting slaughtered against the greenback.
Ethereum has been quite bullish over the last couple of days and has been forming consolidation that a lot of people are paying attention to. The $3000 level underneath has offered a significant amount of support, and I cannot help but notice that there is a massive bullish flag forming in the market that signifies a huge move to the upside.
If we were to break out above the top of the flag, we very well could be looking at a move towards the $5000 level. Granted, that could happen overnight, but it is obvious that we are in an uptrend, and it seems as if Ethereum will continue to attract a lot of attention now that it has become” proof of stake”, making it a much more environmentally friendly version of crypto. Do not be wrong, I do not necessarily trade based upon the latest environmental concern, but it seems to be affecting the market.
Underneath, the $3000 level is obvious support, just as is the 50-day EMA, which currently sits at the $2600 level. That being said, there is almost nothing on this chart that remotely suggests that we are going to fall from here, but even if we did, there should be plenty of support levels underneath that come into the picture. It is not until we break down below the 50-day EMA that I would be concerned about the attitude of the market in general.
This is especially interesting in the sense that Ethereum has been rallying right along with the US dollar, meaning that the denominator of this market is not having a negative influence on the pricing, or at the very least it is not inhibiting growth. This tells me there is real demand for Ethereum, as other fiat currencies are getting slaughtered against the greenback. Beyond that, Bitcoin continues to rally and that helps Ethereum as well, as these markets do tend to move in the same general direction over the longer term. In the short term, I believe that the $3500 level will probably offer a little bit of resistance, but at the end of the day it will only be yet another big figure that we have dealt with and gone through to continue going higher.