The Ethereum market has pulled back from the 50-Day EMA, and therefore looks as if it is not ready to go higher yet.
At this point, the market is going to continue to look at that as a technically important indicator, as well as the $1400 level in that same general vicinity.The market looks very likely to continue to see more of a “fade the rally” feel, as we have seen a lot of lackluster trading in the crypto markets overall.After all, we recently had the “Merge” come into the picture, and we have done nothing but fallen since then, before going sideways.
The $1200 level underneath has offered a significant amount of support, which extends all the way down to the $900 region. You can see on the chart that I have drawn a purple chart from the previous area of importance, so be interesting to see what happens next, as the market will more likely than not continue to see a lot of back and forth and grinding. However, it’s also worth noting that Ethereum is still very benign at the moment, therefore I think we have one of 2 potential opportunities sitting ahead of us.
The first opportunity might be to build up a position at this point, as we are in the midst of “crypto winter.” The market continues to see a lot of sideways action, and the thought of course is that you build up a position slowly, looking to take advantage of a big move over the longer term. You are hoping to get into the “accumulation phase”, and therefore trader makes massive money down the line.
On the other hand, we could very well break down from here and find support at even lower levels. It is because of this that even if you do believe that this is somewhere near the bottom, you always want to jump in with slow and steady momentum. Ethereum will more likely than not turn around, and it is probably something that’s investable, but as far as trading is concerned, in the meantime you have to look at this as more or less a range bound market that you need to babysit if you are going to be involved in this type of chop.