Ethereum has fallen during the trading session on Thursday to test the bottom of the Wednesday candlestick. At this point, if we break down below the $2750 level, it opens up the possibility of a move down to the $2500 level. The $2500 level is an area that has been support multiple times, so it does make quite a bit of sense that we would continue to look at it as a potential target.
If we were to break down below the $2500 level, then it is possible that we could go down to the $2250 level, which has also been supported. After that, the next logical target will be the $2000 level, which is a major round figure. The $2000 level will attract a lot of attention and therefore I think a lot of headline risk will be found down there. If we were to break down below there, we would be a “crypto winter.” While I do not necessarily think that is going to be the case, it most certainly looks more likely than it did just a few weeks ago.
Ethereum also suffering at the hands of a lack of progress when it comes to the ecosystem itself, as we continue to hear all of the hype around “Ethereum 2.0”, the reality is that it is taking much longer than originally anticipated. While there may be a major shift into Ethereum eventually, at this point I think you probably have an opportunity to pick up Ethereum at lower levels. I think there will more than likely be a long period of time where you can simply build a bigger position to hang onto for the future. I do not necessarily think that it is worth bothering with any time soon, but little bits and pieces for a longer-term investment might be possible in the short term.
As far as a bullish move is concerned, we would need to see the $3250 level broken to the upside on a daily close to allow the market to go looking to the $3500 level. That seems to be very unlikely at this point, especially as the only thing that seems to be working is the US dollar in general. Never forget that this market is quoted in those US dollars, and that of course means that it has a significant effect at times.
