Ethereum has rallied again during the trading session on Monday to show a proclivity to go looking towards the $4500 level. At this point, the market certainly looks as if it is going to test that area, perhaps even break above it. Ultimately, this is a market that continues to see plenty of buyers on dips, but we have a shooting star from the weekend that should continue to be resistance. If we can break above there, then the market is likely to go much higher.
To the downside, the $4000 level is going to be an area of importance due to the psychology of it, and of course the fact that it was a previous high. All things point to the upside though, as not only does Ethereum look strong, but quite frankly crypto currencies in general continue to show plenty of momentum. In fact, Bitcoin looks as if it is going to continue to go much higher, and therefore I think it will drag the rest of the world up with it.
The 50 day EMA is sitting just below the $3500 level, an area that also offers significant support. All things being equal, the market is likely to see a lot of noisy behavior, but I do think that it is only a matter of time before we continue to move to the upside. Ethereum does tend to move in $500 increments, so this is why I believe the $4500 is the next major target. In general, the larger crypto currencies all look as if they are ready to go higher and based upon the recent consolidation, we could even see Ethereum go as high as $7500 sometime over the next several months. Crypto in general continues to see plenty of momentum, and I think that will almost certainly be seeing here in the Ethereum market as it is the second largest market. The crypto markets continue to see plenty of volatility to the upside, but as inflation rages, it certainly looks as if fiat currencies will continue to fail to fight back longer term. All things been equal, this is a market that I think will offer plenty of opportunities down the road, but you need to be cautious about jumping “all in” into just one crypto such as Ethereum.
