Ethereum Price Analysis December 5, 2017, Technical Analysis

Over the last several sessions, we have seen Ethereum use the $450 level as support, and I suspect that there is a certain amount of interest in this market as we have recently hit an all-time high at a large, round, psychologically significant number in the form of $500. Because of this, I believe that we are trying to build up enough momentum to finally break out above that level. We do need some type of help from the Bitcoin market though, which has been struggling as of late to hang on to gains. We have seen massive swings in momentum, and that, of course, has a lot to do with what we see in the form of confidence. I think confidence might be a bit shaken in the cryptocurrency world right now, as so much of the money is essentially new retail money.

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I think that buying slowly is probably the best advice that an analyst can give a retail trader, because there is going to be a lot of money chasing the rally, and some of that money is institutional money. Ethereum is a bit different than Bitcoin, because Bitcoin is starting to attract futures traders in the near term, and that, of course, attracts a lot of big money. Ethereum does not have this benefit, but I suspect that if and when the Bitcoin market stabilizes, Ethereum will then get a futures contract.

 

ETH/USD Video 05.12.17

If we break down below the $450 level, it’s very likely that we will go down to the $420 level after that. We have seen a bit of support in that area and certainly would see quite a bit of support at the $400 level. The one thing that does have me a bit concerned about Ethereum at this point is that when you look at the volume, the highest amount of volume was during massive negative candles, and that, of course, does not bode well. I believe that we are going to continue to see short-term pullbacks, as things need to settle down after the recent bloodbath that we have seen occasionally in the crypto world. If we do break above the $500 level, then it becomes more of a “buy-and-hold” scenario. However, I think it is going to be a while before we see that type of confidence.

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