- Ethereum has been somewhat quiet during the trading session on Tuesday but I think that's a good sign considering just how ugly Monday got.
- Although it's worth mentioning that Monday did recover quite nicely so the fact that we plunged the way we did to the $3,000 level on Monday and then on Tuesday we find ourselves much more positive, I think is a good testament to the fact that there is a lot of support underneath here.
- Furthermore, we also have the 200-day EMA offering a little bit of support during the session.
So again, that's another reason to be somewhat optimistic when it comes to Ethereum. If the market were to break out to the upside, the 50-day EMA sits right around the $3,350 level and is shrinking a bit, but ultimately, it's only the 50 day EMA. It only causes a little bit of reaction most of the time. And quite frankly, over the last couple of months, we've sliced through it multiple times.
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Massive Support Underneath
So, I'm not overly concerned about that, a move above does open up the possibility of the market going look into the $3,600 level. I believe that the $3,000 level will continue to be massive support. And as long as we can stay above there, I still feel this is a more or less buy the dip type of market. I understand it's not Bitcoin and I understand there are some inherent differences, but you should also keep in mind that if Bitcoin takes off to the upside, that will probably help Ethereum as well, as it does typically at least track in the same general direction. Overall, cryptocurrencies are somewhat sideways at the moment, as we are trying to sort out what the Americans are going to do with the new pro crypto administration. That should help Ethereum eventually, but right now we're, I believe, in wait and see mode.
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