- Ethereum has had a slightly negative trading session on Wednesday, as we continue to hang around the crucial $3000 level.
- The $3000 level of course is a large, round, psychologically significant figure, and it will be an area that a lot of people would be paying attention to.
- However, there are a lot of different things going on at the same time, so I do think that it is probably only a matter of time before we have to make a bigger decision.
Bitcoin
Don’t forget that the market is mainly driven by the idea of what bitcoin is doing, and right now bitcoin looks like it’s finding some trouble. If the bitcoin market starts to fall apart, the Ethereum market while most certainly follow right along. At that point, we could see the market reach down toward the 200 day EMA, which is closer to the $2600 level. That should offer a significant amount of support, but if we were to break down below there, things get ugly.
On the other hand, if bitcoin turns around and show signs of strength again, then Ethereum should follow right along in that scenario as well. If we can break above the 50-Day EMA, then it’s likely bitcoin really could start to take off to the upside, perhaps reaching toward the $3600 level. Keep in mind that bitcoin has the advantage of having an ETF that a lot of people would be paying attention to on Wall Street, so what you are hoping for is a little bit of “knock on effect” from that market into this one.
Ethereum also has a major influence on crypto in general, so even if you are not trading this particular market, it will have a major influence on other smaller coins that you are dealing with, many of which sits on top of the Ethereum ecosystem anyway. In general, this could be a basing pattern that we are forming, but right now we need to see a little bit of follow-through in order to get aggressive to the upside. I don’t have any interest in shorting this market, at least not yet, but at this point it looks a bit sluggish to say the least.
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