Cryptocurrency needs to see some type of “risk on behavior” to really go higher, but now the markets are so distorted that it doesn’t really matter.
- Ethereum has taken off during the trading session on Wednesday, as we continue to see a lot of noisy behavior.
- All crypto did well, so should not be a huge surprise that we have seen Ethereum follow right along.
- The $1700 level is an area of significant resistance and is worth paying close attention to.
- If we were to break above there, it could open a rush of buying pressure, perhaps ending Ethereum all the way to the $2000 level before it is all said and done.
The Wednesday session saw a gain of almost 6%, while Bitcoin gained almost 7%. As a rule, most of the cryptocurrency moves in the same direction, so this should not be a huge surprise. We have bounced from roughly the 200-Day EMA, so it’s possible that we are during turning everything around. Cryptocurrency needs to see some type of “risk on behavior” to really go higher, but now the markets are so distorted that it doesn’t really matter.
Trying to go Higher
The hammer from Monday being broken to the downside would be a very negative turn of events, and I think that would send Ethereum much lower. It doesn’t look like that’s ready to happen anytime soon, and I think more likely than not we will see a lot of choppy and sideways behavior. With this, I think it’s probably only a matter of time before we must make a bigger decision, but I don’t expect to simply slice through the $1700 level like it wasn’t even there. Yes, this was a very big and strong candlestick for the session, but it does not necessarily mean that we are going to have enough momentum to keep this market going higher.
If we were to continue to see a lot of noise out there, I think it would only be exacerbated in the cryptocurrency markets. Volatility is part of what everybody likes when trading crypto, even though there’s no real use for it in the real world yet. However, it is a perfectly acceptable asset to trade because it does offer big rewards. Whether or not that sticks around remains to be seen but in the short term, it looks like we are trying to go higher.
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