- Ethereum has continued to just barcode here at the highs that we made recently.
- I think at this point in time, it’s obvious that the 3,800 level is an area that you should be paying close attention to with perhaps the $3,500 level offering support.
- This is like a microcosm for a lot of markets I’m watching right now. There’s just no risk appetite and you have to wonder whether or not we’re all just waiting around for something.
It’s worth noting the Bitcoin continues to struggle with the $120,000 level. And if we can finally break above there, that probably launches Ethereum towards the $4,000 level, the next major large, round figure above.
Short-Term is Different
The short term though, looks very much like a market that you’ll be trading with like sideways behavior of a short term back and forth, small positions, possibly. Nonetheless, this is a market that I think you need to pay close attention to the potential upside move. A break above the $3,800 level, of course, is a good sign. But really, at this point, if we break down below the $3,500 level, then you have to be worried about Ethereum and you probably step back, perhaps letting Ethereum drop towards the 50 day EMA, which is closer to the $2,900 level and rising. It looks like it’s going to get to the $3,000 level fairly soon, but it’s also worth noting that this is a situation where we have a lot of back and forth grinding, short-term choppiness. That’s basically how most of the markets around there continue to be and it’s just summertime doldrums. I think now that Wall Street has its fingers all over the crypto markets, it’s going to behave very much like the indices, which of course have been sluggish.
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Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.