Ethereum markets rally during hectic Wednesday sessionCrypto currency markets were very mixed during the Wednesday session, with Bitcoin falling and Ethereum rising. It appears that Ethereum is ready to take the lead again, but we are in consolidation at best currently.
Ethereum break above the $700 level during early trading on Wednesday, as we continue to bounce around overall. The $680 level has offered support again, so that is a good sign. However, there is a certain amount of resistance to be found near the $740 level, so I think that this is a return to the consolidation more than anything else. Ultimately, I think that we could break out, but we need to clear the $740 level on a daily close to be convinced of a bigger move. In the meantime, I think that playing this range with a range bound system featuring something along the lines of the stochastic oscillator may be the way to go.
Ethereum markets rallied against the Euro as well, testing the €600 level. The €580 level has offered support again, so much like against the US dollar, it looks like Ethereum is ready to continue the overall consolidation. I believe that this market will eventually break above the €620 level, and when it does it will probably look for another €20 at that point. Pullbacks should continue to be buying opportunities extending down to at least the €540 level, which I see as the “base” of this consolidated rectangle. I have no interest in shorting, at least not right now. However, if we did break down below the €500 level I would be very negative, at least for the short term. I believe that Ethereum is going to continue to outperform many of the other crypto currencies, including Bitcoin as it has struggled a bit.