- The Ethereum market has rallied initially during the trading session on Tuesday as we continue to see the market try to break above the recent resistance barrier.
- When you look at the Forex chart, it’s easy to see that the $1700 level has caused a bit of resistance, so at this point it’s likely that we will continue to see a lot of selling pressure in that area.
- Having said that, if we do break cleanly above the $1700 level, that will obviously attract a lot of attention.
Possibility of a Move to the $2000 Level Is Real
We have recently had an upgrade in the network but have not been able to really take off to the upside. That being said, if we do eventually get that push, it could open up the possibility of a move to get the Ethereum market back to the $2000 level. I’m not necessarily calling for that, but I do recognize that is a very real possibility. Ultimately, this is a market that would need to see some type of push higher, perhaps based upon the US dollar falling to make that happen.
Underneath, we have the 200-Day EMA which is closer to the $1550 level, and of course is attracting the 50-Day EMA in that general vicinity. If it breaks above there, then it’s possible that we get the “golden cross”, by breaking down below those 2 moving averages could certainly have the market falling rather rapidly. At that point, we could see the market go down to the $1200 region.
Ultimately, I think we are in one of these scenarios where we are about to make a big decision, but we also have to ask whether or not the area that we are at right now as if it’s distribution, or if it is going to be markets trying to build up enough pressure to finally take off to the upside. I think at this point it’s very difficult to see whether or not we are going to go higher or lower, but you should be watching this chart for impulsive candlesticks to break out of this little rectangle to tell us where we are going next, and perhaps at least what the attitude of Ethereum is going to be. Ultimately, crypto will continue to be choppy so be very cautious with your position sizing until we get clarity.
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