- Ethereum rallied slightly during the trading session on Thursday, as it looks like we continue to see a lot of inflows when it comes into crypto.
- Ultimately, this is a market that every time is if you need to be a buyer of it, due to the fact that it has been so overwhelmingly bullish, right along with Bitcoin.
- That being the case, I’m paying close attention to the $700 level, because we can break above there, then I believe that Ethereum really could start to take off.
Underneath, I see the 50-Day EMA as a potential support level, followed by the thousand dollars level. The $3000 level was a major psychological victory for bulls, and therefore you have to look at it through the prism of a potential floor in the market. I do like the idea of taking advantage of “cheap Ethereum” going forward, because it does allow you to scale into a longer-term position.
The ceiling above
The $4100 level for me is the ceiling above, and we will have to pay close attention to it if we do start to rally. Ultimately, I think this is a situation where you have to be very cautious, but you also have to recognize that we are extraordinarily bullish and that’s not likely to change very this, I think it’s only a matter of time before we break above the $4100 level and continue to go much higher. In that environment, I think it’s likely that the market goes looking for the $4500 level the next several months.
Underneath, if we were to break down below the $3000 level, it would change the outlook for this market completely, making it extraordinarily bearish all of the sudden. Ultimately, this is a market that I think will continue to take its cues from bitcoin, so therefore you need to pay close attention to that market as well. In the end, I think you have a situation where are going to continue to see money flowing into crypto in general, and of course as Ethereum is the backbone for most ecosystems, it does make a certain amount of sense that it would be one of the major beneficiaries.
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