- Ethereum desperately needs Bitcoin to show strength in order to turn things around.
- Everything revolves around Bitcoin in the crypto sphere, although admittedly, Ethereum has a completely different use case scenario and it has the added benefit of several other coins out there, such as layer twos that operate on top of the ecosystem.
- So, in that sense, I think there is a certain amount of demand for Ethereum regardless.
But having said that, as far as speculation is concerned, and that's what most of you are looking to do here, you need to see Bitcoin really break out and it's struggling at the $100,000 level. It is because of this that I think that the Ethereum market could very well pull back even further, maybe towards the 50 day EMA. Now that doesn't mean that I want to shorten this market, it just means that I think we have a little bit of work to do. You can see that we did try to recover a bit early in the session, but then gave it up.
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The $3,600 level offers a little bit of support, and it could hold, but I would not be surprised at all to see this market reach the 50 day EMA before it's all said and done, because quite frankly, Bitcoin doesn't look like it's ready to go anywhere yet either. If we do turn things around and close above the $4,100 level on a daily close, then I think at that point you have a good shot at Ethereum going much higher. But when you look at the chart,
You can see that since November, we have, at one point, come awfully close to almost doubling the price or something close enough to that to tell you that we needed to rest. And I think that's what you're seeing across the board, not just in Ethereum, but also in Bitcoin. These short-term bursts are great for the profit and loss statement of your account, but that's only if you take profit. They also kill momentum. Eventually momentum has to stop and there has to be a reason for traders to get involved. I'm not against Ethereum here. I just would like to see a little bit deeper correction and then possibly take advantage of it there.
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