- During my trading analysis of cryptocurrencies on Thursday, Ethereum caught my attention as it has been relatively quiet, despite the fact that we’ve seen quite a bit of volatility and a lot of risk assets.
- At this point, I have to ask whether or not the theory market is in the midst of trying to bottom out, or whether we are getting ready for the next leg lower.
Ultimately, it’s probably worth noting that we have seen quite a bit of volume near the $2300 level, which is where we had bounce from during the previous panic selloff. As things stand right now, it looks like crypto is going to continue to be somewhat toxic, as risk appetite overall has been hurt. Keep in mind that Ethereum is not Bitcoin, but it is worth noting that while Bitcoin had a tough session, Ethereum actually was fairly quiet, leading me to believe that perhaps the worst is over in this market, at least for the short term.
On a Move Higher
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If we can get a higher move in this market, a break above the $2400 level would be the first test. Above there, then the market could go looking to the $2800 level, but keep in mind that you are most certainly swimming upstream at that point in time and fighting what has been a very brutal sell off. Ultimately, I think Ethereum will eventually attract value hunters, but it is a little bit difficult to get overly excited about it at the moment, as the crypto market itself is in a somewhat sorry state.
Ultimately, we could see Ethereum reach the $2000 level rather rapidly, and that will be especially true if Bitcoin really starts to unravel. At this point, unless you are a longer-term believer in Ethereum, you have no business buying this asset right here, despite the fact that it does look like it’s at least trying to form some type of short-term bottom at this level.
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