- Ethereum markets initially tried to rally during the trading session on Wednesday, but it appears that we continue to see a bit of noise above.
- The $3200 level seems to be a bit of a magnet for price, and it’s probably worth noting the Bitcoin was also somewhat sideways during the session as well.
- Remember, Ethereum tends to play second fiddle to Bitcoin, so we need that market to take off in order for Ethereum to really start to attract a lot of inflows.
There are a lot of people out there that are betting on the idea that Ethereum will attract inflows of trading capital when Wall Street finally gets another ETF. If that’s going to be the case, then I think a lot of traders around their banking on the idea that Ethereum will behave the same way Bitcoin has. While that’s possible, I don’t necessarily know if that’s true. After all, there is a major bifurcation between Bitcoin in the rest of the crypto world.
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As we are trading around the 50-Day EMA, does make a certain amount of sense that we would see some noise here. However, the $3200 level was also an area previous support so a bit of “market memory” could come into the picture as well, and that would more likely than not cause a little bit of a headache. Underneath, I see the $3000 level as an area that offer support, especially considering that we had such a massive hammer form there on Friday.
If we can clear the $3300 level, then I think Ethereum is free to go looking toward the $3650 level, and then possibly even run as high as $4000 over the longer term. As a general rule, when I look at this chart, I think of it in terms of consolidation between the $3000 level and the $4000 level above, and therefore I do think that this remains a “buy on the dips” type of market, despite the fact that we have struggled so much over the last couple of days. Quite frankly, if Bitcoin starts to pick up, then it’s likely that Ethereum will follow right along with it.
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