- I think that between $3,000 and $2,500 there is probably a lot of interest, and you can look at this as a market that is probably going to follow the overall risk profile of cryptocurrencies.
- Ethereum initially fell against the US dollar during trading here on Wednesday as we continue to see crypto and all things cryptocurrency-related struggle a bit.
- That being said, I do think that we are in the process of maybe trying to form some type of bottoming pattern.
I think that between $3,000 and $2,500 there is probably a lot of interest, and you can look at this as a market that is probably going to follow the overall risk profile of cryptocurrencies, as it is considered to be what silver is to precious metals in the cryptocurrency community. After all, it is all led by Bitcoin, and Bitcoin is trying to stabilize.
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If Bitcoin takes off, then Ethereum more likely than not will find a bit of a bid. I do think there is a bit of a floor here, maybe somewhere around $2,750, but if we were to break down below there, then the $2,500 level could come into the picture as an even more stringent floor.
Anything below $2,500 would have me very concerned about Ethereum, and I would be looking at probably $1,700 next. To the upside, if we were to break above the 50-day EMA, then we could go looking to the $3,500 level. Anything above there is very bullish.
Ultimately, this is a market that I think continues to be very choppy and noisy, and those of you who are longer-term inclined probably are starting to build up a bit of a position here. I do think Ethereum has a future; it is the backbone of many other ecosystems. But again, it is not Bitcoin. It needs Bitcoin to make everybody excited about crypto, and then they jump in and buy here. I am looking at this as a potential launching point. Keep an eye on Bitcoin, it can give you a heads-up as well.
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