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ETH/USD Price Forecast January 19, 2018, Technical Analysis

By:
Christopher Lewis
Updated: Jan 19, 2018, 05:52 UTC

Ethereum rallied a bit during the day on Thursday, showing signs of life as we approach the $1100 level. However, unless you are a longer-term “buy-and-hold” trader, caution will still be necessary from what I see.

ETH/USD daily chart, January 19, 2018

Ethereum markets rallied a bit during the day on Thursday, and what would have been choppy trading at best. The market looks very likely to continue to be noisy, especially considering that there was so much in the way of massive volatility. I think that the market continues to show a lot of uncertainty, especially considering that the markets just got absolutely crushed. Because of this, there is a lot of trepidation about putting money to work. I recognize that the $800 level underneath is going to be support, and that is an area where I think buyers will be attracted again. However, if we break above the $1200 level, the market should continue to go even higher.

ETH/USD Video 19.01.18

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The lack of volume is a concern, and I think at that point it’s likely that we will see the market rollover given enough time. If we were to break down below the $800 level, then Ethereum markets can breakdown rather significantly. Otherwise, if we can break above the $1200 level, we will probably go to the $1400 level next. There is a lot of noise, but ultimately, I think that we are reaching a critical tipping point in the crypto currency space, and I think that the incredible amount of damage this been done lately will have long lingering effects. In the meantime, expect a lot of volatility but day trading is about all I would do when it comes to Ethereum. The massive amounts of volatility will more than likely make the average Ethereum trader think twice.

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ETH/USD daily chart, January 19, 2018
ETH/USD daily chart, January 19, 2018

About the Author

Being FXEmpire’s analyst since the early days of the website, Chris has over 20 years of experience across various markets and assets – currencies, indices, and commodities. He is a proprietary trader as well trading institutional accounts.

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