At that point, I think I’m going to start accumulating quite a bit of Ethereum.
Ethereum markets have rallied quite significantly during the trading session after initially dropping on Thursday, as we continue to bang around in the same $250 range. The $1000 level underneath continues to offer support, while the $1250 level above offers resistance. Because of this, the market looks as if it’s currently stuck in this range, as we are trying to figure out whether or not this is going to end up being a floor, or if we are just simply killing time before we continue the overall downward momentum.
At this point, there’s nothing in the macroeconomic environment that remotely suggests that crypto market is a place you should be. If that’s going to be the case, you probably have all the time in the world to build a bit of a position. Ultimately, this is a market that I think continues to see a lot of destruction, but even if we do rally from here, I think there are plenty of areas where we could see a lot of trouble at.
The 50 Day EMA is sitting at the $1400 level, and drifting lower. At this point, the market is likely to continue to see that as potential “dynamic resistance”, but even if we break above there, it’s likely that the $1800 level then becomes a major problem as well. In other words, there’s no real argument to be made for this market being able to break through all that from a technical analysis standpoint. That being said, the market is going to continue to see a lot of downward pressure due to the fact that the US dollar has been strengthening, and therefore it will take less of those greenbacks to buy a unit of this commodity.
While the merge is going on, it has been very slow, so it does suggest that the market may be disappointed by all of this. That being said, it is likely that Ethereum will continue to strengthen over the longer term, but we may have a bit of a “crypto winter” to live through first. If we do break down below the $1000 level again, it’s likely that the $900 level will be tested, and then the $500 level will be tested. At that point, I think I’m going to start accumulating quite a bit of Ethereum. Ready to trade Ethereum? Here are the best MT4 crypto brokers to choose from.