If we were to break down below the 200-Day EMA, then it’s likely that we will challenge the 50-Day EMA, which sits just above the 1400 level.
- Ethereum has done very little during the trading session on Wednesday, as we continue to see this market go sideways overall.
- It’s interesting that we are sitting just above the 200-Day EMA, and just below the psychologically and structurally important $1700 level.
- Because of this, I think there’s a very good chance that we see a big move sooner or later, but right now it is relatively quiet.
If we were to break down below the 200-Day EMA, then it’s likely that we will challenge the 50-Day EMA, which sits just above the 1400 level. The 1400 level of course is an area that previously had been both support and resistance, so I think we have to look at this through the prism of a potential target, but also a place where buyers may come back into the picture. If we were to break down below there, then it’s likely that we could see this market really take off to the downside. In that scenario, it’s likely that we go down to the $1200 level.
Looking to Buy the Dips
The alternate scenario of course is whether or not we take off to the upside, and if we do, then breaking above the $1700 level allows the market to go looking toward the $2000 level. The $2000 level is a large, round, psychologically significant figure, and an area where we have seen a lot of resistance previously. Anything above there could kick off the next bullish run. I don’t see that happening at any time in the near future. Because of this, I think we continue to see a lot of volatility more than anything else, and they would believe that sooner or later we will see some type of pullback that perhaps people will look at the dips as a potential opportunity to start buying.
At this point, we are still essentially a “crypto winter”, so it’s difficult to imagine why people would suddenly be interested in going long, but if the market does in fact take off to the upside, then there’s not a whole lot you can argue with, because no matter what the market “should do”, the market will do whatever it is that it wants to. Because of this, I would anticipate that you probably have more shops than anything else ahead in Ethereum.
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