The Ethereum market continues to bounce around while it is looking for some type of directionality. At this point, I think the market is more likely than not going to continue to be noisy, but even if we break out at this point in time, it’s very unlikely that we will see the trend change. Yes, there are some people out there excited about the idea of the merge moving into the forefront in September, but quite frankly we have heard this story before.
Regardless, this is a market that I think will eventually find reasons to go higher, but we may have further negativity in the short term. At this point, the $1000 level underneath is massive support, while the $1250 level is significant resistance. In other words, we are essentially stuck in a $250 trading range at the moment. As long as we stay in this range, I don’t think we have anywhere to go. However, if we were to break out above it, then we might have a short-term run to the $1500 level or so based upon the “measured move.”
That being said, it’s also worth noting that the market is starting to give up some of the gains during the session, so it’s possible that we will simply pull back into the consolidation area and do very little. At this point, the market will continue to see a lot of back and forth, and I do think that we have plenty of time to wait for a bigger move. Ultimately, I think if the market price down below the $900 level, then we will have a massive flush down to the or hundred dollars region. In that scenario, I would start to build a position at $500, and hope that crypto winter lasts long enough for me to build up a massive Ethereum collection.
It’s not until we break above the $2000 level that I would be convinced of any move higher, and at that point would probably make my money somewhere else anyway. After all, looking at this chart you can see how we get overdone quite often, so there’s no point in trying to chase any type of momentum. Unless you truly want to hang onto crypto for the next several decades, it’s all a matter of timing the market.
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