- Ethereum rallied rather significantly during the Thursday trading session as we have seen Bitcoin rally as well.
- This makes a certain amount of sense, because Ethereum has a long history of following Bitcoin wherever he goes.
- As I look at the chart, it’s easy to see that the $4000 level above the is going to be difficult to overcome. It’s a large, round, psychologically significant figure, and an area that previously has mattered anyway.
Consolidation
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We have been consolidating for a few weeks now, despite the fact that we did get a wicked dip about 2 weeks ago. All things being equal, it’s worth noting that the $3400 level is a potential support level, as we had bounced from there. The level is starting to rapidly attract the 50 Day EMA as well, and it’s probably worth noting that the 50 Day EMA is one of the more important trend defining indicators out there. Because of this, I think you have got a situation where a lot of traders will be paying close attention to that indicator if we do in fact get anywhere near it. In and of itself, psychology could probably keep you somewhat supported.
On the other hand, if we do break out to the upside in clear the $4000 level, I would anticipate that the Bitcoin market has also found quite a bit of bullish pressure, and perhaps even broke above the $120,000 level. That is the barrier for Bitcoin, and as the two markets are so highly correlated, we will probably see the $4000 level in the Ethereum market broken right around the same time.
The size of the candlestick for the trading session on Thursday is rather bullish, so I think you’ve got a scenario where people are looking at it through the prism of whether or not we can keep up the momentum. The candlestick is very impressive, but it’s also worth noting that it is somewhat difficult to hang on to this type of move for a long an extended period of time, especially as risk appetite is all over the place.
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