This is a market that I think will continue to be very noisy, but I think it continues to be very negative.
- The Ethereum market has rallied ever so slightly during the trading session on Wednesday, slamming into the 50-Day EMA.
- The market is sitting just above the crucial $1500 level, and it’s probably worth noting that the market has formed 2 shooting stars in a row.
- This suggests to me that the market is running into a lot of resistance, so it’s very possible that we are going to pull back from here.
If we break down from the lows of the Monday session, I think it more likely than not will send this market down to the $1200 level, perhaps even the $1000 level. The $1000 level has been massive support previously, and therefore I think it does make a certain amount of sense that we can see a bit of a fight in that area. This is a market that I think will continue to be very noisy, but I think it continues to be very negative. After all, there has been a lot of excitement about the merger coming, but at the end of the day, the market already knows this. In other words, it’s already been priced into the market so therefore it’s unlikely that we will see that continue to move the market.
Markets Awaiting “The Merger”
However, if the merger does fail for some reason, it’s likely that we could see a massive negative wave of selling in this market. Nonetheless, it still suggests that it is in a downtrend, and I think you cannot let that go. Rallies at this point in time will more likely than not continue to struggle with the $2000 level above and of course the 200-Day EMA.
Ultimately, this is a market that I think continues to be very noisy, but it also sees quite a bit of negativity. Once we break below the $1000 level, that could open up and move all the way down to the $400 level. At that point, I will be buying Ethereum hand over fist, but I think the reality is that the market has a way to go before we get down to an accumulation phase. On the other hand, if we break above the 50-Day EMA, we could get a little bit of a bounce to that $2000 level, but I don’t think that’s going to be the easiest of places to break above.
Ready to trade our Ethereum analysis today? Here’s a list of some of the best crypto brokers to check out.