- Ethereum has rallied a little bit in the Thursday hours as we are up over 1%, but we have not broken out quite yet.
- The $2,800 level is an area that offers a lot of resistance.
- Until we break above there, I think you have a situation where the market is likely to continue to see this as a bottoming pattern.
Ethereum is likely to continue to follow the lead of Bitcoin. Bitcoin did have a good session, so it makes sense that Ethereum got a little bit of the knock on momentum as well. That being said, this is a market that I think has plenty of support underneath. So therefore, if we do pull back, I think it ends up being a little bit of a buying opportunity. I don’t necessarily think this is a market that’s going to skyrocket from here.
A Lot of Support Below
But I also recognize that we are in a very supported area. So, it does make a certain amount of sense that we recover. If we can get above the $2,825 level, then I think we go looking to the $3,000 level next. In that area, we’ll have to deal with the 50-day EMA as well as the 200-day EMA. Short-term pullbacks at this point should see plenty of support like I said, and I think the $2,600 level is an area where a lot of people will be looking at.
Anything below there, then we start to see the $2,400 level. Ultimately, this is a market that I think is in the process of trying to sort things out, and therefore it will be messy. But a Bitcoin can pick up any type of momentum whatsoever, that will translate to higher Ethereum prices, so make sure you’re watching both markets.
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