Ethereum has risen during the trading session on Wednesday and while everybody is watching Bitcoin, they seem to be sleeping on this market.
Ethereum (ETH/USD)
It is interesting that we are approaching the crucial $2,500 level because if we can break above there then I believe Ethereum can really start to take off to the upside. Short-term pullbacks make a certain amount of sense for buying opportunities and we have the 50-day EMA near the $2,222 level.
Ultimately, this is a market that I think there are plenty of people willing to get involved in and it has formed a massive rounding bottom much like Bitcoin.
Institutional Flows and Market Support
As Bitcoin takes off, I suspect the next wave of investment in the digital asset space will probably head to Ethereum if history tells us anything. Pullbacks at this point in time I do think offer value, but I would keep my leverage low if using leverage at all.
The $2,000 level is a major support level and a large round psychologically significant figure that a lot of people will be watching. To the upside, we could go as high as $3,000 just to make a return trip from late January. After that we could go much higher, but we will just have to wait and see how this plays out because we do need good news coming out of multiple places and I do think that it is probably only a matter of time before Ethereum really starts to play catch up.
The traders on Wall Street seem to be interested as we are seeing inflows into crypto-based ETFs. It is only a matter of time before the rest of the world follows. I believe that Ethereum will end up being what it has always been, a second to Bitcoin, and Bitcoin continues to look interesting at the moment.