The Ethereum market has been very bullish during the trading session on Thursday, reaching the $1700 level. At this point, the market is likely to see a major battle, and with the Non-Farm Payroll announcement coming out on Friday, I think we are setting up for something rather big. This is also the major resistance area in the past, so I do think that this is a scenario where we would probably have 2 either take off to the upside or give it up at this point.
When I look at this chart, it does not take a lot of imagination to see that the market has formed a major pennant, and now we have broken up above it. The $1700 level course has a certain amount of attention paid to it as well, not only since it is a large, round, psychologically significant figure, but it’s also got a lot of market memory attached to it. In other words, now that we are breaking above there, we could try to fulfill the potential target of the pennant.
Be Cautious
- The measured move of the pennant is $2100, and while that sounds a bit strong at this point, it doesn’t necessarily mean we have to get there right away.
- I do believe that Ethereum is going to continue to see a lot of noise around it as we see the upgrade come out, but over the longer term I think it’s simply a situation where we had gotten so cheap that a lot of people are out there willing to take advantage of “cheap Ethereum.”
Whether or not that into continuing remains to be seen. However, if we were to break down below the 200-Day EMA, which is just below the pennant, then the market could fall apart. Regardless, I think this is a situation where we are on the precipice of either failing drastically or having a huge move to the upside. With that in mind, let the market tell you what it wants to do, and simply follow. This certainly looks bullish, but then again, we could see the US dollar spike after the jobs number or a whole host of other things that come into the picture to disrupt Ethereum. Be cautious, but it certainly looks as if the buyers are about to try to take over.
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