Potential signal:
- Looking at Ethereum, I like the idea of buying it, somewhere near the 50 Day EMA.
- If we can break above, then the market will probably go to the $3600 level and I would have a stop loss at the $3390 level.
During my daily analysis of the financial markets, the Ethereum market looks particularly interesting, as we are right at the $3300 level, an area that has been very important multiple times, and I think you have a situation where we are just simply trying to pick up some kind of momentum to turn things around. That being said, I think Ethereum desperately needs Bitcoin to push it higher due to the fact that everything flows through Bitcoin.
That being said, this is a market that also needs help from the interest rate situation in the United States. After all, the Bitcoin market is very sensitive to interest rates, as it is considered to be far down the “risk spectrum”. Because of this, the market continues to experience a lot of external pressure, mainly due to Bitcoin, but also due to how it reacts to risk appetite.
Technical Analysis
The technical analysis for this pair is quite simple, as we are at a major support level, and we have the 50-day EMA just above it. If we can break above the 50-day EMA, it would be a sign that the market is trying to break through the higher weed levels we saw earlier, perhaps reaching the $3600 level. A break above the $3600 level then opens the possibility of a move to the $3700 level, an area that was recently topped.
If we break below the $3200 level, we are now looking at the 200-day EMA. The 200 Day EMA is of course a very important technical indicator, and of course a lot of what people look at to determine the overall trend. If we were to break down below there, then the $3000 level could offer support, but we should see some sort of turnaround and the overall attitude of traders in general, which could give Ethereum some reason for things to come around. As things stand now, I think there is an opening here, but we’ll have to wait and see whether or not we can find the necessary momentum.
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