ETH/USD Forecast for the Week of December 18, 2017, Technical Analysis

Ethereum rallied significantly during the trading week, reaching almost as high as $800 on Coinbase. However, the exchange has had several problems over the week, closing down due to the inability to facilitate the trading volume. Because of this, the real value in Ethereum is going to be difficult to determine, as it appears the institutional money flooding into space is overwhelming the infrastructure. Eventually, this causes a major problem.

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In the meantime, it looks to me as if the market is trying to break above the $800 level, but it’s difficult to justify buying at these prices based upon the weekly chart. I think if you can look to shorter-term charts, perhaps a buy on the dips strategy will be the best way to play this market. I also believe that $400 will be a bit of a hard floor, so I would be very surprised if we managed to break below that level. Ultimately, this is a market that I think continues to be very noisy, offering a lot of trading opportunities for short-term traders, but difficult to hang on to the longer-term move based upon technical analysis. At this point, if you are buying Ethereum on a longer-term chart, you are simply basing your trade on faith of value more than anything else. It is almost impossible to do any technical analysis on moves like this other than to say we are far too overbought. However, that typically will give us an opportunity to pick up a value trade underneath, so perhaps if you are patient enough you may get the opportunity.

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