In the short term it looks as if the buyers are willing to at least defend this market.
- The Ethereum market rallied a bit during the trading session on Thursday to reach the $1875 level.
- We are still looking at the $2000 level as a potential resistance barrier, and therefore it’s not until we break above there that I would consider this market broken out to the upside.
- The 200 Day EMA above is also offering quite a bit of psychological and technical resistance as well.
Ethereum Hanging Around the $2000 Level
Keep in mind that the Ethereum market is stuck between the 200 Day EMA above, and the 50 Day EMA below. This typically means that there is a bit of a squeeze coming, and the fact that we are hanging around the $2000 level also suggests that there are a lot of people out there looking at this market currently. Because of this, I believe that it is probably a situation where we are going to continue to see volatility pick up and therefore a lot of confusion.
If we break down below the 50 Day EMA, then the $1500 level will almost certainly be targeted. Breaking down below that level then opens up the possibility of a move down to the $1200 level, which is the top of the previous consolidation area that we had broken out of. The $1200 level should cause quite a bit of noise, and therefore I think it could be a massive support zone.
On the other hand, if we can break above the 200 Day EMA, then Ethereum could really start to take off to the upside, perhaps opening up the possibility of a bigger move to the $2300 level, followed by the $2500 level. Keep in mind that there is a certain amount of momentum behind the Ethereum market, as we have seen big moves towards the upgrade of this network. That obviously is very bullish for this market, and it’s worth noting that Ethereum has outperformed other cryptocurrencies as a result.
Given enough time, we will have to make a bigger decision, but in the short term it looks as if the buyers are willing to at least defend this market. It is because of this that even if cryptocurrency overall starts to fall, I believe that the Ethereum market will probably outperform going into the future as well. The one caveat would be if there is some type of pickup in the implementation of the upgrade.
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