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ETH/USD Forecast: Ethereum Breaks 200-Day EMA

Simply looking for pullbacks will more than likely be the best way to go.

Ethereum took off to the upside on Monday, breaking above the 200-day EMA yet again. At this point, we have wiped out the last selloff from the downside move, so clearing that does open up the possibility of a move much higher. This has been explosive, but I would think that needs to see a little bit of a pullback in order to build up momentum. Having said that, this is crypto, and things can get out of hand really quickly.

If we were to break down below the $3000 level, then it is likely that we could see further selling, but I think the bottom is just about put in here. That does not necessarily mean that we will turn around and go straight up in the air, but I think we are in the midst of trying to turn things around. Think of this as a large ship: it does not simply cut back and forth, you need to have a big wide swing. The Ethereum market seems to have found the $2500 level as the floor, which I find quite interesting considering just how bearish everybody was right around that time.

Breaking above the 50 day EMA would be very bullish and open up the $3500 level, and potentially an even bigger move. Longer term, I do believe that Ethereum continues to go much higher and reaches towards the $5000 level above, which is a large, round, psychological significant number and barrier. If we can break above there, then it becomes a “buy-and-hold situation” going forward. To be honest, that is how I feel about Ethereum anyways, as I am an investor and not a trader.

If we were to break down, then we could go into a “crypto winter”, but that probably requires a breakdown below the $2000 level to confirm it. If we do something like that, then I will be buying Ethereum for the next couple of years in order to build up a massive position. Unfortunately, I do not think I will get that opportunity, so at the end of the day you have to trade the market that you are given, and in this case, we are given a very bullish market. Simply looking for pullbacks will more than likely be the best way to go.

ETH/USD

Christopher Lewis
About Christopher Lewis

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.

 

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