Ethereum Technical Analysis
Ethereum initially did drop down Friday only to turn around and rally again. At this point it looks like it is trying to recover from the 50 day EMA and it’s also mirroring what happened in Bitcoin. After all, it does make a certain amount of sense that Ethereum would follow Bitcoin’s lead and Bitcoin’s had a strong day. Underneath the $2,100 level is a significant support level, so even if we were to fall from here, I think there is still some fight left in Ethereum.
On the upside, the $2,500 level will obviously cause some resistance, but I think it will be minor due to the fact that we have already sliced through it a couple of times. The target at this point in time would be $2,700, but I also believe that takes some time to happen. After all, the market had shot straight up in the air for quite some time to get to the $2,700 level before falling to where we find it now.
The momentum can only last so long, and I think that’s part of what you’ve seen in both directions. Now, we are probably going to try to carve out some type of trading range, with perhaps $2,100 underneath being a bit of a floor. Where the ceiling is, we don’t know quite yet. I suspect it’s somewhere around that $2,700 level, but only time will tell. Ultimately, this is a market that I think will continue to take its cues from the Bitcoin market, and therefore it’s worth paying close attention to what is going on over the next couple of days to give us an idea as to where we may go for the next few weeks.
For a look at all of today’s economic events, check out our economic calendar.