- Ethereum is rather interesting during the trading session on Tuesday as we continue to see a lot of back and forth choppiness.
- And I think you also have a situation where I find it particularly interesting as the 200 day EMA is offering support. We've seen Bitcoin do quite well over the last several weeks.
- And now Ethereum is trying to join that party, if you will. The $2,400 level looks to be a major short-term support level. I think if we break higher, then the $2,800 level gets targeted. It is an area of significant supply.
But now that we're above the 200-day EMA, the real questions will be asked of sellers. Now, one thing that I would watch if you were trading Ethereum is what happens with Bitcoin. If Bitcoin can clear the $110,000 level, Ethereum should follow and just go straight up. If it cannot, then we may have to consolidate a bit, which isn’t the end of the world. Ethereum has seen a pretty significant rally of about $800 over the last couple of weeks. So, some sideways action here forming a bit of a bullish flag isn't necessarily the worst result.
On a Move Lower in Ethereum
If we break down below the $2,200 level, then I think something is a little bit of a problem here. And we will have broken the back of a couple of hammers over the last couple of days.
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So, I really don't like that look at that point. But I think ultimately, we are trying to work off some of the excess buying and we're just waiting to see if crypto in general takes off. Again, I think the real key to this chart is over on the Bitcoin chart and the 110,000 dollars level.
Potential signal: IF Bitcoin breaks above $110,000, I am buying Ethereum as well. I would have a $400 stop loss, with a potential target of $850 at that point in time, regardless of ETH price.
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