Potential signal: If Ethereum ends up above the 50 Day EMA on a daily close, I will buy. I will have a stop loss at the $2950 level, and a target of $3885.
- Ethereum plunged during the early hours on Tuesday, but at this point in time, the market is likely to continue to see a lot of noise out there as we're hanging around the crucial $3,000 level.
- The $3,000 level is obviously a large round to figure and obviously an area where people might have options, or they may just simply be looking to try to get into the market at the cheap.
- Whether or not that ends up being the case could very well determine what happens with Ethereum for the next several weeks.
The $3000 level is a major psychological level, and if we give that up, and perhaps even more importantly give up $60,000 in the Bitcoin market, it’s possible that we could see crypto in general take a beating.
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So, whether or not that actually ends up being the case, it's a little bit difficult to tell. But I do think at this point you have to look at it through the prism of, whether or not, we start to see a little bit of momentum. So, with that being said, I think you have to wait to see if we get a reasonable bounce.
You Need to See Momentum Here
If we do get a reasonable bounce, then, I think the 50 day EMA could be a target. If we can break above the 50 day EMA, then this could be a major swing low. We are most certainly in an area that is going to cause a lot of noise. Ultimately, this is a market that if we were to break down below the $2,800 level, then we could test the 200 day EMA underneath which is closer to $2,600.
Keep in mind that Ethereum, of course, will move in tandem with Bitcoin over the longer term, and Bitcoin looks like it's a little bit threatened at the moment as well. So, there might be value hunters here. But the most important thing I think you need to see is some type of momentum to the upside enter the market. Otherwise, you may be trying to catch something that's about to fall apart.
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