Ethereum Looks to Test Support Yet Again


If the ability to short the CFD market is available, then you might have an opportunity to short this market on rallies.

Ethereum has fallen again during the trading session on Tuesday, although in very quiet action. Ethereum looks like it’s got nowhere to be anytime soon, which you can say about the rest of the crypto markets. Because of this, I am paying close attention to this consolidation area between $900 and $1250. I would be very surprised if we can break out of this area unless, of course, it is to the downside.

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I realize that crypto has been absolutely crushed as of late, but quite frankly there’s nothing that can keep this market from falling even further. If we break down below that $900 level, I suspect that the move down to $500 is going to be rather quick. That is where I think we start to see more support, as the market has been going back and forth for some time and it looks as if we are going to try to accumulate more down in that area.

If you think that Ethereum has a strong future, this could be a nice opportunity to pick up value and build up a larger position, and that’s exactly what I plan on doing in the Ethereum market. If you are a longer-term believer in Ethereum, then you might be able to dip your toe in the water in this general vicinity, but I would not be buying a lot in one shot. After all, if we were to turn around and go to the upside, it’s really not until we break above the $2000 level that you could make an argument for a resumption of an uptrend. That is essentially doubling the current price, which takes a massive amount of effort.

Even if we were to break above the $1250 level, I suspect that will just be a “bear market bounce.” The 50 Day EMA sits just below the $1500 level and is sloping lower. Crypto has a long history of falling drastically, going sideways for a couple of months, and then falling again. I suspect that is what is about to happen. I hope that we break down because then I will start buying a full coin at a time. Until then, I’m going to be watching to see whether or not we get a big move. If the ability to short the CFD market is available, then you might have an opportunity to short this market on rallies.

ETH/USD chart

 

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