The Ethereum market has rallied significantly during the trading session on Thursday, as the $4500 level has been important over the last couple of weeks. The market continues to look very bullish, but I think given enough time we will see this market break to fresh, new highs again and there is not much between here and $5000 to change anything. Ethereum continues to see a massive inflow of money, as the block chain becomes one of the biggest attractors of currency at the moment.
The market continues to be very noisy, but as you can see, we have been grinding away in a very nice upward move, and there is nothing on this chart that suggests it is about to change. I think that the market probably finds dips as an opportunity, with the $4500 level offering the first major level of support, but the $4000 level underneath would be even more important. The $4000 level of course is a large, round, psychologically significant figure, but we also have the 50 day EMA racing towards it. With this being the case, the market would continue to see plenty of reason to find technical traders getting involved.
To the upside, if we can break above the $5000 level, then it kicks off the next major move to the upside. The market currently looks likely to smash through that level given enough time, but if and when we make that happen, then I think we start looking towards the $7500 region. The Bitcoin market certainly looks as if it has much further to go to the upside, so by extension the Ethereum market should follow right along.
If we were to break down below the $4000 level, then you could make the argument of further selling pressure. In that scenario, I would be extraordinarily interested in buying Ethereum at the $3000 level. That does not necessarily seem that likely, but it is something that you need to keep in the back of your mind as crypto markets do tend to be extraordinarily noisy. Anything is possible when it comes to crypto markets, so you need to keep in mind that it is all about position scaling and not jumping “all in” into Ethereum in one big push.
