Ethereum falls during the weekEthereum markets fell a bit during the week, reaching down towards the bottom of the previous couple of candles, to show support yet again. However, as Bitcoin looks ready to roll over, it’s likely that Ethereum could follow.
Ethereum fell during the week, reaching down towards the $620 level. This is an area that has seen a bit of support recently, so it’s not a huge surprise to see a bounce from there. If we can break down below this level, the market probably unwinds towards the $500 level, perhaps even the $400 level. I think that in general though, we could get a bit of a consolidation area forming right around the $700 handle. I do not like buying this market for any significantly at the time, at least not until we break above the $800 level. This market has bounced nicely as of late, but there is the concern of Bitcoin breaking, that could cause a bit of downward pressure overall.
Ethereum has fallen against the Euro as well, reaching below the €600 level. I think that the market will probably continue to get a bit lower, looking for support just above the €500 level. If we can break down below there, the market could go lower. I think that the €700 level above is massive resistance, an area that has shown itself to cause issues in the past. If we were to break above there then I think we could go to the €800 level. However, I think that this is an area that will continue to offer a lot of trouble, so i.e. would anticipate more selling once we get closer to that area. I believe that it’s easier to trade this market from the short term considering we are so close to this area.