- During the session on Tuesday, we have seen quite a bit of noisy behavior in the crypto markets, with the Ethereum market looking like it is trying to at least keep its footing.
- This would be a very bullish sign, and I think traders would have to at least start to think about the possibility that Ethereum is finding its bottom.
- Adding more intrigue to this is the fact that the $2000 level seems to be the epicenter of all a lot of the support.
Bitcoin Leads the Way
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It’s also worth noting the Bitcoin has done fairly well over the last couple of days, and that brings more confidence into the crypto markets. While Ethereum most certainly isn’t Bitcoin, it at least gives people the idea of putting money back into digital assets. Remember, Ethereum is the phone of a lot of alternative ecosystems, so I think a lot of people will be paying close attention to how this behaves. After all, there are literally hundreds of coins out there that could follow right along to whatever Ethereum does. Ultimately, this is a market that I think will continue to see a lot of volatility, but it does start to look very interesting at this point.
Ironically, what it might take for Ethereum to go higher is for Bitcoin to recapture the $90,000 level. The $90,000 level is psychologically important, but it’s also structurally resistant to gains in Bitcoin. In general, I think we have a situation where one will lead the other.
On the other hand, if we were to fall again and lose the $1800 level, you could see the Ethereum market fall apart, perhaps plunging down to the $1500 level. That doesn’t seem very likely, but it is something that we need to keep in the back of her mind as there are a lot of concerns out there. All things being equal, I think the one thing that you should probably keep in mind is that crypto should be very noisy.
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