- Ethereum continues to test low levels and at this point we desperately need some type of momentum to get this going.
- Pay close attention to the $2,000 level because I think that will be key here.
- Unfortunately for cryptocurrency at the moment, there is a major risk off feel to the markets and that generally does not help crypto.
Keep in mind that this is a market that also is representative of alternative coins, as so many of them are piggybacked on the Ethereum ecosystem. This has been a brutal sell off over the last couple of months, but depending on what your timeframe is, you may begin to look at this as a potential longer term dollar cost averaging opportunity.
Not Convinced, But Can See DCA’ing
I don’t necessarily subscribe to that thought process quite yet, but I can see where you would make that argument. It really comes down to timeframes. If you are a shorter term trader, this is going to be a very difficult place to make a dollar. If we break above the $2,000 level, then I would anticipate that perhaps we will have a little bit of momentum build towards the $2,200 level.
On the other hand, if we break down below the lows of the last two or three days, we could see this market drop all the way down to $1,550 without too many issues. We are oversold, but that’s the thing about crypto. You can get 60, 70 % pullbacks pretty quickly. And that’s exactly what’s happened here. Again, it comes down to your timeframe.
If you are a true believer in the Ethereum ecosystem and you do think that eventually they’re going to build things on top of it that are used every day, this could be thought of as an opportunity, but this is going to be one of those things where if you buy it, you don’t want to pay too much attention to it if you can avoid that.
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