ETH/USD Price Forecast January 4, 2017, Technical Analysis

The Ethereum market went back and forth during the session on Wednesday, grinding its way towards the top of the overall uptrend channel. The $900 level above could be resistance, but I think once we break above there, the market should then go to the $1000 level. I believe that short-term pullbacks will be opportunities to go long, and even if we were to break down below the uptrend channel, it’s more than likely that we will find plenty of buying opportunities underneath. The $800 level underneath is the “floor” of the market, as it was the scene of a significant break out previously. That, of course, should offer plenty of support as per typical technical analysis.

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I think that based uonthe overall attitude and consolidation that we have broken out of, the market should go looking towards the $1000 handle. That is a massive large round number, so it’s likely that we will continue to see an attraction to that level, but it’s going to take a massive amount of momentum to finally break above there. Until then, I think we could start to add slowly on the way up, and I think that Ethereum could outperform Bitcoin in the short term, as Bitcoin looks a bit suspicious and soft in the general short term.

If we were to break down below the hundred dollars level, the market could go to the $700 rather quickly, and it would change the overall attitude of the market. I think that the marketplace is going to continue to strengthen though, especially considering that the US dollar has been softening against most fiat currencies around the world, Ethereum included. Because of this, I think that the markets will continue a general upswing, but it will not necessarily be a massive and impulsive move. Patience will be needed to benefit from the buying pressure.

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