- Ethereum had a nice run over the last several days but slowed down on Friday to show signs of hesitation.
- The market is sitting just below the $1800 level, an area that I think a lot of people will be paying attention to.
- The market had been supported in that general vicinity for quite some time, so now one would anticipate that “market memory” comes into the picture.
Eyeing the $2000 Level
There should be a significant amount of noise between $1800 and $2000, so I think it’s very likely that we will continue to see a lot of pushback in this general vicinity. In fact, it’s not until we break above the $2000 level that you can suggest that this market is going to take off for a bigger move. Granted, there are a lot of moving pieces at the moment, and it’s worth noting that the biggest type as of late is “The Merge” coming in September. That being said, Ethereum has a long history of disappointing when it comes to upgrades.
I think it’s more likely than not that we could probably drop down to the 50-day EMA. The 50-day EMA is sitting right around the $1200 level, which is an area that I think should be important. If we break it down below there, then it’s likely that the market drops to the $900 level. The market is obviously going to be very noisy, but that’s typical for crypto. It’s been a nice rally over the last couple of days, but if we get more of a “risk off” type of market out there, then it’s likely that the Ethereum markets will fall right along with the rest of them.
Regardless, I think you have a bit of noisy behavior ahead of you, and I think it’s going to be very difficult to break above the $2000 level. If that does happen, then it’s likely that we would see other altcoins as being the real play. If Ethereum takes off to the inside, it’s likely that a lot of the smaller markets will continue to see upward pressure as well. Ultimately, they will follow right along, so if you miss the Ethereum trade, you may be able to pick up some other coins as they should be even more effective.
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