- Ethereum did rally a bit during the trading session on Monday, but we still see the $2,000 level above acting like a bit of a psychological, if not structural barrier.
- I'll be paying close attention to the $2,000 level because if we can get a daily close above there, and if Bitcoin is rallying at the same time, then maybe, just maybe you can make an argument for some type of continued bounce.
- Ultimately though, I think Ethereum is still going to be at the whim of risk appetite, which is pretty poor at the moment.
And as a result, I don't like the idea of getting involved in a huge position. That being said, if you are a longer term believer in cryptocurrency, and crypto space, then it makes a lot of sense that you might try to pick up Ethereum at these very cheap and low levels.
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Ethereum is the Back Bone of Many Others
After all, this is a market that represents the backbone of lot of alternative coins, and therefore, there are a lot of other ecosystems that will be directly tied to what's going on in Ethereum. Ultimately, you have a situation where a lot of people are going to be looking at this $2,000 level as a massive signal.
And if we can turn around and really start to rally from here, it's likely that we could go looking to the $2,200 level initially, followed by the $2,400 level. It is worth noting that the 50-day EMA sits right at the $2,400 level. The $1,800 level underneath could be a bit of support, but I think breaking down below there could signify very, very ugly things in the Ethereum market. So, I'm watching. It's definitely an interesting spot.
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