The Ethereum market did initially fallen during the trading session on Tuesday to reach down towards the crucial and psychologically important $2500 level. That being said, we have bounced just a bit to show signs of life, and therefore I think we could get a situation where the $2500 level suddenly becomes a bit of a battleground.
The shape of the candlestick is a bit of a hammer, but I do not read too much into it other than the fact that we probably get a little bit of a bounce. Whether or not it is a sustainable bounce is a completely different question altogether, and therefore it is likely that you will get an opportunity to short the theory and if you choose to do so rather quickly. You can also take a look at the 50 day EMA getting ready to break down below the 200 day EMA, forming the so-called “death cross.” Quite frankly, crypto is not the place to be right now although I do hold some of their him for the long term.
One of the best ways you can trade this market is to wait for massive selloff like the one that we have just had and adding slowly. The market breaking down below the $2500 level could open up a move down towards the $2300 level, and then eventually the $2000 level. This chart looks horrible, and I really see no real reason for it to change anytime soon, unless of course the Federal Reserve changes its monetary policy. I know that a lot of crypto traders do not like to think of the world of fiat, but now that institutional money is flowing into these markets, fiat money means just as much is it does here as it does against gold, stocks, or bonds.
It would not be until we break above the $3000 level that I even remotely consider buying, unless of course you are a longer-term holder. Even then, I would be very cautious about my position size, because something tells me you get a nice opportunity to buy it even lower price so there is no need to go “all in” in this general vicinity. The market will continue to move right along with Bitcoin, so keep an eye on that market as well, because the rest of crypto does not rally without it for any significant amount of time.
