- The Ethereum market pulled back just a bit during the trading session on Friday, as we continue to see a lot of noisy behavior.
- The 50-Day EMA just above is a potential resistance barrier, and if we can break above there, then I would expect to see quite a bit of “FOMO trading.”
- That being said, we have a significant amount of work to make that happen. If we do though, I think there will be a massive, short covering rally.
Don’t Forget Bitcoin
Bitcoin of course is the leader of crypto markets in general, so we do need to see some bullish pressure over there in order to see the Ethereum market take off to the upside. Underneath, I see the $3000 level as a major support level in this market and could possibly be an area that people look at through the prism of a “floor in the market.”
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If Bitcoin starts to take off, especially if it can break above the $70,000 level, then I think it’s very likely that we could see Ethereum go looking to the top of the overall consolidation range, meaning that we would not only hit the $3700 level, but we would also see this market go looking to the $4000 level after that.
On the other hand, if we turn around a breakdown below the $2800 level, then it opens up the possibility of a move down to the 200-Day EMA. I currently sits at roughly $2550, and therefore I think could bring in longer-term trend followers even if we do see that happen. Having said that, it doesn’t seem likely that we would see this market break down to that extreme. That being said, if we do see that happening, then it is probably something that comes down to the risk appetite overall. After all, if we start to see crypto get hammered, it could be a scene where we have a lot of concerns geopolitically, through interest rates, or just a general fear of taking risk overall. As a general, I am bullish of this market, but I also understand that we have some work to do.
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