The Ethereum market pulled back a bit on Wednesday after having a three-day rally to lift the market quite drastically. At this point, it is very likely that we will continue to see noisy behavior, and I think that will be a mainstay in the crypto markets as we trying to figure out whether or not we are going into “crypto winter”, or if we are trying to stabilize. If we do get stabilization, it does typically end up being a long and drawn out process. That being said, the best thing that you can see in the Ethereum market, right along with anything else crypto-related, is going to be very quiet trading. Quiet and sideways is the new bullish when it comes to crypto.
Underneath, I would anticipate seeing the $2500 level offer a bit of support, assuming that we do in fact pull back to that area. If we do, then I would look for some type of supportive action that we can take advantage of. I would love to buy supportive candles in little bits and pieces in order to build up my position size. I do not necessarily know whether or not Ethereum can hang on to the latest area of consolidation, but I am more than willing to take a shot at it due to the fact that the Ethereum markets have been so bullish long term.
If we do break down below the most recent lows, it is very likely we will go looking towards the $2000 level which in and of itself will attract a certain amount of attention. I believe at this point that breaking below the $2000 level opens up “crypto winter”, when crypto falls drastically and does nothing for an extended period of time. If that does in fact happen, I will be more than willing to step in and start buying again in order to build up a huge position.
The alternate scenario is that we get a daily close above the $3000 level, which would be extraordinarily bullish. At that point, I am more than willing to start adding to my position in Ethereum, which I have recently picked up just a bit in order to add to a collection longer term. That being said, crypto is better traded as an investment and not a short-term market in this type of environment.
