- Ethereum plunges to kick off the week as panic hits the market.
- Over the weekend we've seen a significant number of announcements involving AI that had everybody losing their mind at the open on Monday.
- The idea that an open source Chinese AI is free and outperforms a lot of the exciting hot names on Wall Street really got the markets freaked out.
This was felt in the crypto markets, including Ethereum, not necessarily because of anything to do with crypto itself, but more or less a massive risk off type of move around the world occurring. The Ethereum market slammed into the $3,000 level, an area that I do think is going to end up being important. So, I think at this point in time, it might be worth watching. After all, this could be a nice bounce just waiting to happen if you are patient enough to let the market settle down and start getting excited about “cheap crypto” again.
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If we can continue to bounce from here, then it's likely that Ethereum will continue to turn around and try to rally, but I also recognize that Ethereum is notoriously noisy anyway. This is a market that's been in a sideways consolidation for what seems like a lifetime, and I don't know if that's changing anytime soon. That's actually a positive thing for the market, but over the longer term, I believe that we will go looking to the $3,600 level and then possibly $4,000. Keep in mind Ethereum almost always follows where Bitcoin goes. So, with that being the case, I'd be a little hesitant to get too aggressive, but I do think you have to look at this through the prism of a market that might be a little oversold. We'll just have to see how it behaves right around this 3000 level because if it breaks down below there it could drop another $200.
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